Can I get a home loan without a deposit?

A guide to buying houses

Where do I start when buying property?

Buying property is probably one of the biggest financial decisions you’ll make in your lifetime. As such, it requires a large amount of consideration. It doesn’t matter if you’re buying a six bedroom house on Wolseley Road – or a studio apartment in Tuggeranong, buying property is a very big deal.

Where to start? As a first step, it’s a good idea to work out what your budget is – based on your deposit and how much you can borrow. Luckily, uno has a borrowing power calculator that helps you work out how much you’re working with. We also have a section which details everything you need to know about your
so be sure to check that out too.

Securing pre-approval for your expected maximum loan amount will then help you negotiate the best purchase price when it comes time to buy. Once you know your budget, you can begin that exciting home search.

Steps to buying a home:

  • Step 1: Budget
  • Step 2: Apply for a home loan & get pre-approval
  • Step 3: Find a home
  • Step 4: Bid with confidence
  • Step 5: Celebrate and settle

Couple researching home loans

How much money do I need for a house deposit?

There is no magic number when it comes to a deposit, however in Australia the majority of lenders require you to have saved 10% of the property’s value (a couple of lenders may only require 5%).

How do I calculate a deposit?

This means if you’re looking to buy a residential property with a value of $800,000, you’ll need a deposit somewhere between $40,000 (5% of $800,000) and $80,000 (10%).

If you only have a 5% deposit, be aware that this needs to comprise “genuine” savings – i.e. it’s not dependent on your brother selling his car, or a loan from a friend. These are the things that make lenders nervous. Your deposit will affect how much you are able to borrow from your lender. Please keep in mind that money from a parent or third party is known as a gift and not considered genuine savings.

A rule of thumb is, the smaller your deposit, the more rigid the regulations are on it. If you’ve only got a 5% deposit it has to be genuine savings. if you’ve got 10% or more, a gift (from a parent, for example) can be part of it.

If you’re buying an investment property, lenders tend to be more rigid, with most requiring a deposit of at least 10% of the property’s value.

How much deposit do I need as a first home buyer?

Whether you are buying your first home or your sixth property – and using equity from your previous homes to do so – the rules are still the same. You’ll need at least 5% (and 10% for investors) of the value of the home to put down as a deposit. The same rules apply if you bought a home back in ‘82 and sold it in ‘95, and want to buy a new property in 2018. Just because you’ve done it once, doesn’t mean you get a special deposit discount the second time round.

How do I buy property with no money down?

If you haven’t saved a deposit but want to buy property, and don’t have a sugar mummy, all is not lost. You’ll need to qualify for what’s known as a guarantor loan. A guarantor is usually a family member who is legally responsible for paying back the entire loan if you cannot – or will not (I will not, I say!) – make the loan repayments.

The guarantor will also have to pay any fees, charges and interest. If you have a direct family member who can act as guarantor and use their property as guarantee, you may be eligible for a guarantor loan. Read more about guarantor loans and how to get a loan with no deposit

Can I get a home loan with a 5% deposit?

These days, it’s recommended home buyers save as much as 20% of the home’s value to put towards a deposit. But raising a 20% home loan deposit makes it challenging for first-time buyers to enter the property market – particularly given the high prices in our capital cities. The good news though, is that under some circumstances you may be able to secure a mortgage with as little as a 5% deposit. You’ll need to meet eligibility criteria and you’ll have to look ‘safe’ on paper to offset the increased risk your high loan-to-value ratio (LVR) presents.

Typically you’ll need:

  • A clean credit history – on-time repayments on existing debts over at least the last six months
  • A strong asset position – the lender will determine the strength of your assets based on your age and income
  • Stable employment – you will typically need at least six months in your current job, although some exceptions may apply
  • Low personal debt – this figure should not amount to more than five per cent of the value of your property
  • Some genuine savings – this should amount to at least five per cent of the property’s value to make up the shortfall of the loan, and cover the expenses associated with buying a property

Moving house
  • Moving house

What costs are involved in buying a house in NSW?

The costs involved in buying a home differ from state to state, not only because of the variance in house prices but due to things like stamp duty and legal costs – which tend to be higher in metropolitan cities.

How much is stamp duty on a house in NSW?

, we can see that the stamp duty on a $32 million house in Wolseley Road, NSW is $2,180,768; whereas on a $322,000 studio apartment in Tuggeranong, ACT it is $6,548.

As well as the stamp duty fee itself, you’ll have to pay a transfer fee and a mortgage registration fee. The transfer fee is usually around $200-$300 and the mortgage registration fee around $100-$150.

Before you exchange contracts with the seller, you’ll want to hire a conveyancer. The legal work involved in preparing the contract of sale for a property (if you’re selling), reading it thoroughly and making any changes (if you’re buying), home loan documents and other related docs, is called conveyancing. Costs will differ depending on who you use, but you can expect to pay anywhere from $600 to $1500.

Read: Costs involved in buying and selling property

How can I invest with no money?

Really? Sorry bud, you’re going to need some money to invest. Unless you’re Kyle MacDonald. When it comes to buying an investment property, most lenders will want to see a deposit that equates to 10% of the property’s value. In rare cases you might be able to get a guarantor loan, but these are usually reserved for owner/occupiers so don’t get your hopes up.

How much does an average house cost in Australia?

Australian property prices are talked about in Australia more than the weather is in the UK – and that’s saying something. Asking how much an Australian house costs is a bit like asking the cost of a flat white: it really depends on where you are. In Sydney, a flat white is usually around $3.50 although if you go somewhere like Thirroul on the South Coast it’s not uncommon to pay $4. And don’t get me started on Darwin, where a (pretty average, if we’re being honest) latte can set you back $5! Unbelievable! Especially when you can get all-day parking for twice that! Hang on, we’re talking about property aren’t we?

The median property prices in each state change month-to-month, but here’s where they stand, according to February 2018 CoreLogic data:


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January 11, 2024
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Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
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December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
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December 18, 2023
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December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
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December 6, 2023
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November 3, 2023
If you’re looking for a trustworthy, thorough, reliable & knowledgeable Mortgage Broker then you must call Anita Callaghan! I can’t even imagine how stressful this process would’ve been without her. Anita went above and beyond to make sure she answered every question, responded to every text (even on weekends/after hours), and followed up on every detail to ensure we had all the info we needed. Anita is a true people person who is warm, empathetic, kind and supportive. You can tell she loves helping people and loves what she does, which is probably why she’s so good at it! Can’t thank you enough Anita, or recommend you more highly! You’re the best!
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