Is It Possible To Buy A House With No Money Down?


Buying a home is part of the Australian dream. It’s not just about telling everyone else that you’re successful. Having your own property gives you a place to escape to and some financial security. Unfortunately, the price of houses continues to rise, making it more and more difficult to get the deposit you need to purchase any property.

used with permission from Melanie Gowen

If you’re in this situation it is worth noting that you’ll often get a better deal by checking out what this real estate auctioneer Northern Beaches has to offer.

Deposit Rates

To apply for a standard mortgage you’ll probably need a deposit of 20%. That means, a deposit of $100,000 for a property worth $500,000.

It could take you a long time to save that much money. In some cases, you may qualify for a 5% deposit. However, to qualify for this you either need to be eligible for the government scheme or comply with all the mortgage providers’ requirements. In most cases that means having a good job, being able to supply a guarantor, and paying the cost of the lender’s insurance. In effect, you’ll be taking out an insurance policy for the mortgage company that covers them for any shortfall between the amount you have borrowed and the amount they get from selling your house if you default on the loan. 

Of course, 5% of $500,000 is $25,000, that’s still a significant sum to save. 

used with permission from Melanie Gowen

No Money Down

In rare cases, it is possible to get a mortgage without paying any deposit. You will need to find a lender prepared to do this. They will need a guarantor and you’ll need to pay the lender’s insurance. 

In general, you’ll need to ask the mortgage company if this is an option and they will decide based on your personal circumstances. It’s worth noting that alongside the lender’s insurance, you will also pay a higher rate of interest. This will increase the amount of money you pay back overall but it does make the property more affordable.

used with permission from Melanie Gowen

Additional Costs

While it is possible to get a mortgage without paying a deposit, that doesn’t mean there are no costs at all. Purchasing a house means paying the estate agent or auctioneer fees. You will also be liable for legal fees as you’ll need legal representation to ensure the sale is genuine and above board.

Alongside this, you’ll probably need to pay for a building inspection and there may be a few other costs.

In short, it’s possible to purchase a property without a deposit. But, that doesn’t mean it’s the best idea for everyone. Think carefully before you commit to purchasing a property via this route. It may be better to borrow the deposit or simply wait and save. 

used with permission from Melanie Gowen

Check Government Schemes

The government does offer assistance and the nature of this assistance will change periodically. It’s worth keeping an eye on what the latest property offers are as you may find that you are eligible for government assistance and it can make the purchase much easier. Thanks to Scerri Auctions for consulting


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