No Deposit Housing Loan

No Deposit Housing Loan

With this type of loan, customers borrow 100% of the property price, or in some cases 110% to cover all the legal costs, mortgage insurance and moving costs as well.  

Traditional loans require a 5% - 20% deposit, but with a no-deposit loan, this is not necessary, instead you borrow 100% of the property value.

Many major banks have pulled this product from the market, because of the global financial crisis.  There are a few lenders still offering no deposit home loans but not many.  Once the economy picks up again, lenders may decide to offer this product again.

Loan Terms
The terms of the loan will be similar to a standard home loan.  You can choose how long the loan term will be – up to 30 years usually - and can often make extra repayments if you wish.

Repayment Options
Check with your lender to see if must repay the loan monthly, or whether you can repay the loan fortnightly or even weekly.  

Home Loan Features
Because you are borrowing a higher amount than you would if you had a deposit, you are going to pay more in interest as the amount of your loan will be higher.  You may also be required to pay Lenders Mortgage Insurance, and there can be higher fees associated with a no-deposit loan.

Interest Rates
Obviously as you are borrowing such a large amount the lender will charge you a higher interest rate than that of a standard home loan, and you will need to be sure that you can afford the higher repayments.

So, if you just can’t wait any longer to buy your first home, or you are investing in a second property but don’t have any savings, then a no deposit home loan can suit you well.  You should talk to a mortgage broker first to ensure that the product you choose is right for you, and you understand what you are signing up for.  

With this 100 home loan product becoming less and less common in the home loan market, talking to a mortgage broker will help to clarify your options.  We can use a calculator home loan to work out all your repayments, based upon how much deposit you have.

Call us today on 1300 787 665 and talk to a local mortgage broker about your mortgage options.


With interest rates coming down, now is the time to speak to a mortgage broker. We know which banks are dropping rates and who is raising.

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