100% Home loan

True 100 percent home loans are a thing of the past, but you can get a no-deposit loan by using a guarantor or being creative with your deposit savings.

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100 percent home loans used to be very common. If you were purchasing a home for $300,000, you could often borrow the full amount, without having to save up a for a deposit. This is because many lenders operated on the understanding that house prices always go up in value, so they felt assured that the asset would grow in value, while the loan would be repaid and decrease.

Now, we know more about how property cycles work, and many lenders only offer 100% home loans with a guarantor. Learn how these types of loans work and see if you're eligible.

100 percent home loans guide

Compare mortgages that let you borrow up to 95%

Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Fees Monthly Payment

Newcastle Permanent Building Society Fixed Rate Home Loan P&IHome 1Y Fixed≥ 5% Deposit

Newcastle Permanent Building Society Fixed Rate Home Loan
  • App: $0
  • Ongoing: $0 p.a.
A fixed rate loan which allows extra repayments, and charges a low application fee.

Greater Bank Great Rate Home Loan P&IHome≥ 20% Deposit

Greater Bank Great Rate Home Loan
  • App: $0
  • Ongoing: $0 p.a.
Fund the construction of your new family home with a very competitive variable interest rate.

Newcastle Permanent Building Society Premium Plus Package Fixed Rate P&IHome 2Y Fixed≥ 5% Deposit

Newcastle Permanent Building Society  Premium Plus Package Fixed Rate
  • App: $0
  • Ongoing: $395 p.a.
$2,000 refinance cashback
Enjoy a discounted fixed rate and the ability to package the loan with other financial products. $2,000 cashback for eligible refinancers borrowing $250,000 or more.

IMB Fixed Rate Home Loan P&IHome 2Y Fixed≥ 5% Deposit

IMB Fixed Rate Home Loan
  • App: $449
  • Ongoing: $6 per month
NSW and ACT customers only. Lock in a low fixed rate for two years. Available with a 5% deposit.

Newcastle Permanent Building Society Fixed Rate Home Loan P&IHome 3Y Fixed≥ 5% Deposit

Newcastle Permanent Building Society Fixed Rate Home Loan
  • App: $0
  • Ongoing: $0 p.a.
Split you home loan for free with one of the lowest fixed home loan rates.

Newcastle Permanent Building Society Premium Plus Package Home Loan P&IHome≥ 5% Deposit

Newcastle Permanent Building Society Premium Plus Package Home Loan
  • App: $0
  • Ongoing: $395 p.a.
$2,000 refinance cashback
No application fee and 100% offset account. $2,000 cashback for eligible refinancers borrowing $250,000 or more.

Compare up to 4 providers

Most of the loans in the table above allow guarantors to cover at least a portion of your loan. All loans in this table have a maximum LVR between 90% and 95% and some may require at least 5% deposit of genuine savings.

Borrow 100% with a guarantor

Woman and her boyfriend just bought their own house.The only real way to borrow 100% these days is with a guarantor. This is usually a family member who owns their own property and can guarantee your deposit.

You borrow the money and make repayments as usual, but the guarantor is partly responsible if you can't meet your repayments. A guarantor can cover part or all of a deposit or even the loan itself.

Here are the basic things you need to know about guarantors:

  • Eligibility. A guarantor should be a family member over 18 years old who has equity in their property and good credit.
  • Risk. If you default on your mortgage (meaning you can't make repayments) then your guarantor might have to pay up. This could force them to sell their property in order to pay back your lender.
  • Repaying the deposit. If your guarantor only agreed to guarantee a 20% deposit then once you've repaid 20% of the loan they're off the hook even if you default. This helps minimise the guarantor's risks.
  • Avoid LMI. Another advantage of having a guarantor is you can avoid lenders mortgage insurance even though you haven't saved a 20% deposit yourself. This could save you thousands.

Learn more about the ins and outs of guarantor home loans

Can I borrow more than 100%?

Yes. With a guarantor some lenders will let you borrow up to 110% of a property's value.

You can also read more on no deposit borrowing in our longer guide.

Getting a deposit through cash gifts, inheritance or other alternatives

If you can't get a guarantor you could scrape a deposit together from many sources. Lenders do want you to have at least 5% of a property's value in genuine savings, but there is a way around this. You can get a deposit together in the following ways:

  • Your parents could give you money as a gift or you could inherit the money.
  • You could sell an asset, such as shares, to fund your deposit.
  • You could use equity in another property you own.
  • A first home owners grant can count as part of a deposit.

The genuine savings rule is the tricky issue with the options above (and the fact that not everyone can take advantage of gifts or assets). But if money from a gift, sale or inheritance has been sitting in your account for three to six months most lenders will accept it as genuine savings regardless.

The complete guide to saving up a deposit

Get a low deposit mortgage

Lastly, you can save a 5% deposit the old-fashioned way and look for a low deposit home loan. There are many mortgages out there which you can get with a 5% or 10% deposit.

How do you spot a low deposit home loan? Look at the maximum insured loan to value ratio (LVR), which should be 90–95%. A 90% LVR means a 10% deposit. A 95% LVR means you only need a 5% deposit. But don't forget there's lenders mortgage insurance on top.

Start comparing low deposit mortgages

Why won't banks give you a 100% home loan any more?

After the 2008 Global Financial Crisis, Australian banks tightened their lending criteria. Lending someone 100% is considered too risky.

By tightening their lending criteria, banks and lenders were better able to lend to people who could realistically afford to repay their loans.

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10 Responses

    Default Gravatar
    RathanavearyOctober 30, 2016

    I would like to get the !00% home loan information ASAP
    Thank you.

      Avatarfinder Customer Care
      MayOctober 31, 2016Staff

      Hi Rathanaveary,

      Thank you for contacting Finder.

      There are still lenders that may offer 100% of the purchase price of a property, provided you will have a guarantor, which lowers your risk as a borrower. You can read further on how a home loan with a guarantor works through our guarantor home loans page.

      Though it may also be best to reach out to a mortgage broker to discuss the options available for your specific situation.

      Hope this helps.


    Default Gravatar
    gavinFebruary 24, 2016

    Can I get a home loan for 175000 without a deposit

      Default Gravatar
      BelindaFebruary 25, 2016

      Hi Gavin,

      Thanks for reaching out.

      Your ability to qualify for a low deposit home loan will depend on the lender’s eligibility criteria, your income and assets, your credit history, and any existing debt or liabilities that you have.

      You can compare a range of low deposit home loans on our comparison table with 95% loan-to-value (LVR) ratio to see if there’s one that matches your borrowing needs.

      Alternatively, if you don’t have a deposit then you may want to consider opting for a guarantor home loan to increase your borrowing power. Keep in mind that if you borrow less than 80% LVR for a full documentation loan, you’ll need to pay the lender’s mortgage insurance (LMI).

      I also recommend getting in touch with a licensed mortgage broker A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application. 

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.


    Default Gravatar
    GTDecember 19, 2015

    I have a fully paid property in overseas. Is there any possibility that I use my overseas property as a collateral to obtain 100% loan for purchasing a property in Australia?

    Many thanks in advance.

      Avatarfinder Customer Care
      MarcDecember 21, 2015Staff

      Hi GT,
      thanks for the question.

      Generally, Australian lenders will require Australian property as security, as this enables them to be able to sell the property off in the event that a borrower defaults on their loan.

      I hope this helps,

    Default Gravatar
    ElizabethDecember 13, 2015

    I would like to buy a home. I am gainfully employed by the NSW Govt have held my position for 22 years.

    I have no guarantor or deposit to buy a home I earn up to 85K per year. Am I able to get 105 home loan, I am so sick of paying rent.

    Thanks Liz

      Avatarfinder Customer Care
      MarcDecember 14, 2015Staff

      Hi Liz,
      thanks for the question!

      Unfortunately, now after the global financial crisis, lenders in Australia will not lend out more than 95% of a property’s value without a guarantor. This is because loans above 95% are considered to be of a much higher risk than regular loans. You might want to consult a financial advisor to help you get on the path to saving a deposit.

      Sorry I couldn’t be of more help,

    Default Gravatar
    carolJuly 3, 2015

    can I get a loan for 100,000 with no deposit from somewhere

      Default Gravatar
      BelindaJuly 6, 2015

      Hi Carol,

      Thanks for your enquiry.

      Some lenders will allow you to borrow 100% of the property price, however this can only be achieved through a guarantor loan, vendor finance or using security from another existing property.

      On this page, you can compare a range of home loans that require little or no deposit in the table provided above. You can also fill out the form to speak with a mortgage broker to discuss your options.

      Kind regards,

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