Rarely on your own. Mainstream lenders cap a standard home loan at about 95% of the property’s value, so most buyers need at least a small deposit. The ways to buy with little or nothing saved are a family guarantee, a gifted deposit, the 5% Deposit Scheme or a 2% scheme. You still need cash for costs.

No deposit home loans at a glance
Route Smallest deposit Lenders mortgage insurance
Family guarantee None from you, with a guarantor’s property as extra security Usually avoided
Gifted deposit The gift becomes your deposit Depends on the deposit size
5% Deposit Scheme 5% None
Family Home Guarantee (single parents) 2% None
Help to Buy 2%, with a government share of the home None

Is a true no deposit home loan possible?

Not in the sense of a lender simply lending 100% to you alone. Without extra security, lenders keep the loan below the property’s value, and above 80% they charge lenders mortgage insurance. The 100% loans that do exist rely on someone else: a parent who guarantees part of the loan with their own property. Everything else on this page reduces the deposit rather than removing it.

How does a family guarantee replace a deposit?

A parent or close family member offers equity in their own home as extra security. The guarantee usually covers the part of the loan above 80% of your property’s value, so the lender is secured as if you had a 20% deposit and lenders mortgage insurance is avoided. Some lenders lend the full price this way, and some also cover the purchase costs.

  • The guarantor’s home is on the line for the guaranteed amount if you cannot pay.
  • You still have to afford the repayments on the whole loan from your own income.
  • The guarantee can be released later, once your loan falls to about 80% of the value through repayments or growth.

The guarantor home loans page explains what parents are taking on, and the worked example of a guarantee from retired parents shows how lenders view older guarantors.

Can a gift be your whole deposit?

Often, yes. Many lenders accept money from family as the deposit when it is a genuine gift, confirmed in a signed letter that says it never has to be repaid. Some lenders also want part of the deposit saved by you over time, called genuine savings, especially when the deposit is under 10%. The gift letter template shows what lenders expect, and genuine savings explains when your own saving matters.

What do the 2% and 5% schemes need?

  • 5% Deposit Scheme. A 5% deposit with no lenders mortgage insurance, for first home buyers or anyone who has not owned property in Australia in the last 10 years. The Sydney price cap is $1,500,000 and there are no income caps.
  • Family Home Guarantee. A 2% deposit with no lenders mortgage insurance for single parents and legal guardians of dependent children who do not own property.
  • Help to Buy. A 2% deposit, with the government buying up to 30% of an existing home or 40% of a new one. Income caps apply ($103,000 single, $165,000 joint or single parent from 1 July 2026) and the Sydney price cap is $1,300,000.

Each is assessed by the scheme and the lender. The NSW first home buyer schemes guide covers how they combine, and the 5% deposit checker gives a quick answer on eligibility.

A worked example on a $750,000 first home

A first home buyer in Sydney is looking at a $750,000 unit and has very little saved. Repayments are at the 6% example rate over 30 years.

Three routes on a $750,000 purchase
Route Deposit needed Loan Monthly repayment, about
Family guarantee, full price $0 $750,000 $4,497
5% Deposit Scheme $37,500 $712,500 $4,272
Help to Buy, 30% government share $15,000 $510,000 $3,058

The lower repayment under Help to Buy comes with a cost: the government owns 30% of the home and takes its share of the value when you sell or buy it back. As an eligible first home buyer, this buyer pays no transfer duty, because the NSW exemption covers homes valued up to $800,000. A buyer who does not qualify would pay $27,937 in duty on $750,000.

What cash do you still need with no deposit?

Even with a full family guarantee, settlement is not free. Expect to pay for:

  • Transfer duty, unless the first home buyer exemption or concession applies.
  • Registration fees. The NSW Land Registry charges $182.73 to register the transfer and $182.73 to register the mortgage in 2026-27.
  • Conveyancing, building and pest inspections and any strata report.
  • A buffer for moving costs and the first repayments.

The guide to first home buyer costs in Sydney lists them in order, and the stamp duty calculator works out the duty for your price.

Does a deposit bond count as a deposit?

No. A deposit bond stands in for the deposit paid when contracts are exchanged, but the full deposit is still due at settlement. It helps when your money is tied up, not when you have none. The article on deposit bonds explains the difference.

What are the risks of buying with little or no deposit?

  • Negative equity. With little equity, a fall in values can leave you owing more than the home is worth.
  • Higher repayments. A bigger loan costs more each month and more interest over time.
  • Family exposure. A guarantee or a gift involves people you care about; put the terms in writing.
  • Less room for error. Without savings behind you, a job change or repair bill bites harder.

Which route suits which buyer?

Matching the route to the buyer
If you Look first at
Have parents with equity who are happy to help A family guarantee
Have family offering money they do not need back A gifted deposit
Can save 5% and buy under the cap The 5% Deposit Scheme
Are a single parent with 2% saved The Family Home Guarantee
Earn under the income caps and want lower repayments Help to Buy

The low deposit home loans page compares the four main small-deposit routes side by side.

Questions people ask

Can I get a 100% home loan without a guarantor?

Not from mainstream lenders. Without a guarantor’s extra security, lenders generally stop at about 95% of the value, with lenders mortgage insurance.

Can I buy with no deposit and no family help?

Not usually. The smallest deposits without family help are 2% under the Family Home Guarantee or Help to Buy and 5% under the 5% Deposit Scheme, if you are eligible.

How much do I need for costs if I have no deposit?

Enough for duty if you do not qualify for the exemption, registration fees, conveyancing, inspections and a buffer. An eligible first home buyer under $800,000 pays no duty.

Charles Touma works out which no deposit or low deposit route fits your income, your family’s position and your price, and how much cash you need on settlement day. A free 30-minute call covers all five routes. General information only, not credit advice; scheme eligibility is assessed by the scheme administrator and the lender. Sources: Housing Australia, 5% Deposit Scheme, Family Home Guarantee and Help to Buy; Revenue NSW, First Home Buyers Assistance Scheme and transfer duty rates; NSW Land Registry Services fees, checked 17 October 2026. Example figures use the 6% example rate over 30 years.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.