24 May 2021

What is a No Fee, No Deposit Mortgage?

Types of Insurance

Buying a house in Australia can be expensive, and for many first-time home buyers, it may be hard to save up enough money to make a deposit on a home loan. Guarantor loans make it possible for newly independent young people to buy their first home. These no fee, no deposit home loans allow you to borrow up to 105% of your property’s value. 


Guarantor Home Loan Basics

Guarantor home loans are loans where property (usually belonging to a family member like a parent) is provided as loan security and collateral to ensure loan repayment.



If you purchase a home using a guarantor loan, you have access to the following benefits:

  • No deposit is required
  • No Lender’s Mortgage Insurance is added
  • Some lenders may provide discounted interest rates
  • you can consolidate credit card and other minor debts



There are some risks associated with guarantor loans, especially for individuals who provided their property as collateral. If you cannot keep up with your mortgage repayments or default, the guarantor is liable for the outstanding debt. If this happens, they must take over the loan repayment. The worst-case scenario is that if the guarantor cannot afford to make repayments, they are at risk of having their house sold to cover the remaining loan amount.


If you are a first-time home buyer and need help navigating the ins and outs of guarantor loans, our team at Mortgage House can help. We are committed to providing our customers with the knowledge they need to make informed decisions about the home loan options available to them. Contact our team today to discover how we can help you. 

Fast track your home loan
Apply Online Book a Call Back
133 144

Why Choose Mortgage House?

Award Winning