Calculate your no deposit home loan repayments
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Home loan comparison
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Savings.com.au
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Purchase: Am I Eligible for a No Deposit Home Loan?
This calculator provides you with an estimate of whether you are eligible for a no-deposit home loan. Not all lenders provide no-deposit home loans. This calculator provides you with a general indication and does not consider the assessment and eligibility requirements of individual lenders.
Assumptions:
The calculator assumes that the minimum deposit for a home loan is 5% of the property price.
The calculator does not take into account the upfront costs associated with getting a home loan, nor lender's mortgage insurance which is likely to be payable.
Usable equity is calculated as the difference between the loan balance and 80% of the property value input by the user.
What does “No Deposit Home Loan” Mean?
No deposit home loans are loans that don't require the borrower to pay a deposit on the loan. The lender loans you 100% of the purchase price of the home. However, this type of loan may require certain conditions, such as having a guarantor.
Nowadays, home loans with no deposit are rare due to the risks associated with them. And, when you do find one, these loans are usually granted for buyers that meet certain financial conditions.
These conditions may include:
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having a guarantor
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a high credit score
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Stable and significant income (which may vary between lenders)
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good and clean loan repayment record
While home loans with no deposit are rarely available, some lenders also offer a low deposit home loan - a loan that will let you borrow up to 95% of the total price of the property with a 5% deposit.
Factors to Consider for a No Deposit Home Loan
There are considerations to think about before applying for a no deposit home loan.
Loan Interest Rates
your interest rate may be relatively higher than a 'normal' home loan because of the amount you've borrowed. This indicates your monthly loan repayments are likely to be quite high as well.
Financial Capabilities
given you are likely to have a high-interest rate, you have to be sure that your income can cover the monthly payment
Property Depreciation
there's a risk your property value could decrease, in which case your loan amount may be higher than your property value.
Lenders Mortgage Insurance (LMI)
When you purchase a property with an LVR (loan-to-value ratio) of more than 80% you're required to pay a lenders mortgage insurance fee which can increase the overall cost of the loan.
No Deposit Home Loan Calculator FAQ
There are considerations to think about before applying for a no deposit home loan.
This will vary depending on the lender and your personal circumstances such as your credit history, if you're accessing the equity in another property, or if you have a guarantor.
The lowest deposit for a mortgage in Australia can be 0% of the total property price if you obtain a no deposit home loan, or around 5% if you obtain a low-deposit home loan.
A no or low deposit home loan could allow you to enter the property market sooner, as you won’t have to save as much money for a deposit. However, it's likely to be a more expensive option due to the higher interest rates and repayments, and there's strict criteria to be approved for this type of loan.
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of 9 October 2024.
^The addition of offset sub-account means your comparison rate will change.
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