100% home loans: Borrow 100% of the property value

Rates and Fees verified correct on December 4th, 2016

100% home loans comparisonHow to use a 100% home loan to buy a home with no deposit

Prior to the global financial crisis (GFC), some lenders allowed consumers to borrow 100 -120% of the value of the property they were looking to purchase, often without proof of savings and without a deposit. With the GFC came tighter lending restrictions, and no-deposit home loans largely went the way of the dinosaur.

There are still low deposit home loans, which allow you to borrow with a deposit of as little as 5%. You can compare some of these home loans below. The table below can be used to compare home loans which allow guarantors. Note that the loans in the table below have maximum LVRs set. Loans with LVRs that go above the advertised ones using a guarantor may have different conditions, rates or fees.

But for those struggling to save a deposit, there is still one avenue available. Many lenders will still offer 100% home loans if a guarantor provides their house as security. Read on to find out more about 100% home loans with a guarantor. Note that the loans in the table below have maximum LVRs of 95%. Loans with LVRs above this using a guarantor may have different conditions, rates or fees.

Comparison of 95% max LVR home loans that allow guarantors

Rates last updated December 4th, 2016.

NAB Tailored Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)

Interest rate now 3.85%

July 12th, 2016

NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)

Interest rate now 3.75%

July 12th, 2016

ANZ Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)

Comparative rate decreases by 0.10%

August 12th, 2016

View latest updates

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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
Enjoy a fixed home loan with discounts on rates and other NAB products.
3.75% 4.87% $0 $395 p.a. 95% Go to site More info
Greater Bank Great Rate Discount Variable with Family Pledge Home Loan - Up to 110% LVR
Discounted rate available with family pledge loans. Family pledge loans require no LMI and no deposit. NSW, Qld and ACT only.
3.89% 3.89% $0 $0 p.a. 110% Go to site More info
NAB Base Variable Rate Home Loan - Owner Occupier (P&I)
A competitive no frills home loan with no application fees for a limited time. 250,000 Velocity Frequent Flyer point offer, conditions apply.
4.10% 4.14% $0 $0 p.a. 95% Go to site More info
NAB Tailored Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier)
Flexible fixed rate home loan which will allow you to take a break from repayments if you're ahead of scheduled repayments. 250,000 Velocity Frequent Flyer point offer, conditions apply.
3.99% 5.04% $600 $8 monthly ($96 p.a.) 95% Go to site More info
IMB Essential Home Loan - LVR > 80% (Owner Occupier)
Enjoy a 100% offset account and no monthly fees.
4.31% 4.33% $0 $0 p.a. 95% Go to site More info
NAB Tailored Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)
A fixed rate home loan with the ability to lock the interest rate at the time of loan approval for up to 3 months. 250,000 Velocity Frequent Flyer point offer, conditions apply.
3.85% 5.12% $600 $8 monthly ($96 p.a.) 95% Go to site More info
ANZ Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)
Lock in your rate for 2 years with an interest only option.
3.90% 5.06% $600 $10 monthly ($120 p.a.) 95% More info
Westpac Flexi First Option Home Loan - 3 Years Introductory Special Offer (New Owner Occupier, P&I)
A limited time deal for new owner occupiers. Advertised rate includes 1.03%p.a. discount for the first two years.
3.99% 4.37% $0 $0 p.a. 95% More info
St.George Fixed Rate Advantage Package -  2 Year Fixed Rate (Owner Occupier)
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cash back available for refinancers, conditions apply.
3.99% 5.07% $0 $395 p.a. 95% More info
Commonwealth Bank Wealth Package Fixed Home Loan - 2 Year Fixed (Owner Occupier)
Fee free extra repayments available during the fixed term. $1,250 cash back offer for refinancers. Conditions apply.
3.84% 4.97% $0 $395 p.a. 95% More info
Beyond Bank Basic Variable Rate Loan - (Owner Occupier)
Enjoy 100% offset account with redraw facility and borrow up to 95% LVR with low monthly service fee.
4.40% 4.57% $445 $11 monthly ($132 p.a.) 95% More info
ING  DIRECT Orange Advantage Loan - $150,000+ (LVR > 90% Owner Occupier)
A fully featured home loan with an offset account and discounts available.
4.65% 4.86% $0 $199 p.a. 95% More info
Commonwealth Bank Standard Variable Home Loan - Owner Occupier
Standard variable home loan with a low doc option for self-employed borrowers.
5.22% 5.37% $600 $8 monthly ($96 p.a.) 80% More info
Credit Union SA Variable Rate Home Loan - $20k and above (Owner Occupier)
A variable home loan that allows you to borrow from $20,000.
5.19% 5.25% $600 $0 p.a. 80% More info
Suncorp Bank Standard Variable Rate Home Loan  - (Owner Occupier)
Enjoy a competitive interest rate, make fee free extra repayments and a redraw facility.
5.40% 5.56% $990 $10 monthly ($120 p.a.) 95% More info
ANZ Breakfree Home Loan Package  - $250,000 up to $499,999 (LVR >80% Owner Occupier)
Pay no application fee with 100% offset account with redraw facility and borrow up to 95% LVR.
4.50% 4.60% $0 $395 p.a. 95% More info
Bank of Melbourne Basic Home Loan - Regular Rate (Owner Occupiers, P&I)
Ideal for first home owners or anyone who wants a no-frills, basic variable rate home loan.
4.64% 4.69% $500 $0 p.a. 95% More info
St.George Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
A no frills loan with a competitive rate and a maximum LVR of 95%.
4.08% 4.09% $0 $0 p.a. 95% More info
Westpac Rocket Repay Home Loan - Principal and Interest
The Westpac Rocket Repay Home Loan lets borrowers to own their home sooner with a 100% offset to save on interest.
5.29% 5.43% $600 $8 p.a. 95% More info

How do 100% home loans work?

Normal deposits to purchase a property are usually around 20% of the property's value. This demonstrates to your lender that you have the ability to save, and gives them an indication that you’ll be able to keep up your mortgage repayments. 100% home loans let you borrow a higher percentage of the property value and make it easier for you to own your own home without spending the time to save up a 20% deposit. This is only made possible through the help of a guarantor. A guarantor is a close family member who offers their own property as security if you default on your loan.

Learn more about guarantors

To learn more about securing a home loan with the help of a guarantor, read our comprehensive guide on guarantor home loans.

Monetary gifts from your parents or other family members can help you increase your deposit, but it’s important to note that most lenders today expect at least 5% of the property value through genuine savings. This usually includes time conditions, such as holding or establishing these savings over a number of months (usually around three months).

Things to consider about 100% home loans

If your parents or family members go guarantor on your loan, you also have to consider that they’re then responsible for keeping up your repayments in the event that you can no longer do it. You'll also need to pay all the normal application fees up front. It’s essential to consider if you will be able to afford a 100% home loan in the long run. Although it might give you instant access to funds for your home, you are still required to pay the loan and interest off accordingly.

Features of a 100% home loan

  • Linked with a guarantor. Having a guarantor is not a decision that should be taken lightly. As mentioned, if the borrower defaults on the home loan, then the mark appears on both the borrower and guarantor’s credit history, not to mention that it will be the guarantor’s responsibility to pay back the default. Because of this, it’s important that you have a very close and trusting relationship with your guarantor.
  • Maximum LVR. While the vast majority of home loans cap the amount you can borrow at 95% of the property value, these loans can allow you to borrow up to 100% - 120% of the property value as your loan amount. Some financial providers cap this loan amount, for example at $1,000,000. Your maximum loan amount will depend on which financial provider you elect to go with.
  • Offset accounts. Some 100% home loans offer you the option of an offset account. This is where a transaction account is opened up as well with your home loan and the two are linked together. The money in your transaction account will be offset daily against your home loan, helping you reduce the end balance you have to pay.
  • Additional repayments and/or general repayment flexibility. These home loans typically allow you to make additional repayments when you can to help you reduce your loan and avoid paying interest. There are also generally choices for flexible repayment options.
  • Redraw facilities. 100% home loans often have a redraw facility. This means you can redraw repayments that you have already made when you need the money the most.

How to compare no deposit home loans

  • Fees. As with all home loans, 100% home loans do have fees and charges. Some are upfront and some are on a monthly and annual basis. It’s important to compare the fees and charges associated with the loan before deciding which one is right for you.
  • Interest rates. It’s also very important to compare the interest rate. As mentioned, these types of loans tend to have a higher interest rate than other home loans, so compare the rates across providers and select the best one for you.
  • Flexibility. A flexible home loan is a good home loan. This may be in terms of flexibility in your repayments, the opportunity to redraw and any other flexibility the loan allows for you. Look at your options and go with a home loan that provides you with the most wiggle room on the things that matter to you.
  • Restrictions. Some home loans will also have restrictions in regards to making additional repayments, redrawing etc. Try and select an account that isn’t restrictive and gives you some freedom.

If you decide a 100% home loan with a guarantor isn't the right fit for you, a low deposit loan might be a great way to get you into your first home sooner. Add them to your comparison of products today.

Marc Terrano

A passionate publisher who loves to tell a story. Learning and teaching personal finance is his main lot at finder.com.au. Talk to him to find out more about home loans.

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10 Responses to 100% home loans: Borrow 100% of the property value

  1. Default Gravatar
    Rathanaveary | October 30, 2016

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

    • Staff
      May | October 31, 2016

      Hi Rathanaveary,

      Thank you for contacting finder.com.au we are a financial comparison website and general information service we are not mortgage specialists so can only offer general advice.

      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 this page on how a home loan with guarantor works.

      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.

      Cheers,
      May

  2. Default Gravatar
    gavin | February 24, 2016

    Can I get a home loan for 175000 without a deposit

    • Staff
      Belinda | February 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.

      Above on this page you can compare a range of low deposit home loans 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 lender’s mortgage insurance (LMI).

      Thanks,
      Belinda

  3. Default Gravatar
    GT | December 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.

    • Staff
      Marc | December 21, 2015

      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,
      Marc.

  4. Default Gravatar
    Elizabeth | December 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

    • Staff
      Marc | December 14, 2015

      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,
      Marc.

  5. Default Gravatar
    carol | July 3, 2015

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

    • Staff
      Belinda | July 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,
      Belinda

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