No deposit home loan? It can be done

The keys to getting a home loan without a deposit are having are really solid income and a clear credit file. Once those two boxes have been ticked your mortgage broker can go over the options with you. The easiest way to get a no deposit loan is to have a family member go guarantor for you. This works by simply having a family member with equity in their home which the bank will take as limited security (only in the amount of the deposit). Generally this 20% of the purchase price of your first home or a little more.

Some borrowers do not have traditional family structures and some banks are very strict about which family members can be a guarantor. This would potential exclude them from the process. Others have more relaxed rules about who can be used. Talk to your broker.

You may also be able to do this without a guarantor. Talk to you broker about which banks are happy for you to borrow the deposit funds from one source and then obtain a traditional home loan from another. Again this is a commonly used option. Your broker and of course you must be sure that the loans are affordable and they are right for your circumstances. However, when the property market is increasing quickly it can be better to get on the property ladder now rather than wait.