Soniez Group

Home Equity Loans

Get a second home loan with your home equity

What Is A Home Equity Loan?

A home equity loan allows you to borrow against the equity you have in your home to invest in shares or property, repay your debts, renovate or pay for lifestyle expenses.

Until recently, house prices have risen rapidly across most of Australia, giving homeowners a readily available and inexpensive source of credit. Using your home equity to expand your investment portfolio could be one of the best ways to earn passive income in Australia right now.

Our popular articles on home equity loans

For borrowers

No deposit loans have become an attractive option for many people who do not have the funds to contribute towards a mortgage. Some of the main benefits of using a guarantor to get a no deposit home loans include:

For guarantors

Guarantors have a fixed liability and can only be pursued for the guaranteed amount, making this a more secure option. The guarantee can be secured by either their property or a term deposit.

Guarantors do not have to make the scheduled loan repayments and the guarantee can be released upon request if, at a later date, the borrower meets standard bank criteria and the bank agrees. Normally, this is when the borrower owes less than 80% of the value of their property.

What if these options don’t work for me?

Unfortunately, the options listed above are the only ones under which lenders in Australia offer no deposit house loans

The best way for you to get a home loan is to save a deposit of your own.

Following these tips will help you qualify:

No, lenders will not consider rent as genuine savings for a no deposit home loan.

Rent is used as genuine savings so the lender can determine if the borrower can commit to a home loan.

Genuine savings must be accumulated over three months. So, when you’re borrowing over 85% of the property value, lenders will check your character to make sure you can make repayments without hardships.

How to get approved for a home loan without a deposit

Not sure whether you will be approved for a 100% home loan?

Call us on 1800 771 900 or enquire online today to find out!

No deposit home loans are available in capital cities and major regional centres:

What if you are outside these areas?

One of our lenders will accept no deposit loans with the help of a guarantor in any location in Australia!

As an online mortgage broker, we can help you secure a no deposit house loan across Australia. Call us on 1800 771 900 or enquire online today.

Yes, you can borrow 100% and consolidate your other debts such as HECS/HELP, personal loans and credit cards provided you have a guarantor who is working and allows you to use their property as additional security for your loan.

There are no lenders in Australia that can lend more than 100% of the purchase price with a no deposit loan that is not supported by a guarantee.

We can compare the options from our panel of lenders for you. With help from our experts you’ll get approved for the amount you need at a competitive interest rate.

Buying a house to live in: First home buyers and other people buying an owner-occupied house make up the majority of people applying for 100% home loans in Australia, with the help of a guarantor.

They are looked at favourably by the banks because they tend to look after their property well and are more likely to pay their loan on time. Comparatively speaking, they are lower risk borrowers.

Investors: Investors are eligible for no deposit finance if they have a guarantor but they may be required to meet more stringent criteria due to the higher risk their application poses to the banks.

In some cases this requirement can be waived; for example, for someone who lives with their parents and wants to buy an investment property as their first property rather than a place to live in.

Investors who reduce their loan amount to 95% of the property value have a wider choice of lenders.


That depends on the property market.

If you are in a market that is increasing in value, more often than not it is far cheaper to borrow 100% using a guarantor or borrow 95% and pay LMI, than to wait and save a deposit. This is because the lost capital gains from waiting to buy and paying more ends up costing you tens of thousands of dollars.

Most people find it difficult to save a deposit anyway and, after six months, are in the same situation they were in before. For this reason, most people prefer to borrow 100% rather than to save.

You can use our calculator to decide if you should buy now or save a larger deposit.

Don’t forget that Australia is not a single property market! For example, Brisbane may be increasing in value while Sydney and Melbourne remain steady. Talk to local real-estate agents to find out what is happening near you.

If you are in an area that is stable or declining in value, then it may be better to save a 5%-10% deposit and apply for a 95% loan if you would prefer not to use a guarantor. You can even use inheritance as a deposit for this.

Please contact us on 1800 771 900 or enquire online and we can discuss your options with you so you can make an informed decision as to when to apply for a loan.

Yes! No deposit home loans with a guarantor are available with almost all loan features including:

Note that no deposit finance is not available with a line of credit loan. You have the option to switch loan types at a later date when the guarantee has been removed.

Before you undertake a comparison of different no deposit loans you should complete a needs analysis with a mortgage broker. You should consider which features will give you the biggest benefit and which you are likely to use.

Not as high as you think! No deposit home loans with a guarantor are often available at competitive interest rates and even application fee waivers for some loans.

We are able to obtain professional packages and basic loan discounts through several of our lenders.

Did you know that some lenders have very little appetite for high-LVR home loans? A high-LVR loan is any loan that is for more than 80% of the property value.

The secret to getting a good interest rate is to apply with a bank that is actively seeking this market segment. As mortgage brokers we know which lenders are aggressively marketing to 95% and 100% borrowers.

Please contact us on 1800 771 900 or enquire online to find out how we can help you.

Sometimes it seems like every bank and non-bank lender in Australia has very similar interest rates and fees. However, for 100% home loans, some banks are way ahead of the pack, with interest rates unmatched by their competitors. This is because some banks are interested in lending over 90% of the property value, whereas others aren’t.


Our brokers are also likely able to negotiate an interest rate lower than that advertised by the banks!

Going for a guarantor loan will save you a small fortune, as you will not pay an LMI premium. If you can’t get a guarantor loan, you’ll probably have to pay LMI.

LMI rates vary depending on the lender you choose and the amount you borrow.As a general rule, LMI for loans that are less than $300,000 are very cheap while LMI for loans over $500,000 can become quite expensive, at roughly 4% of the loan amount.

You can use our mortgage insurance calculator to estimate the cost of LMI.

When you are required to pay LMI, you only receive 92%-94% of the property value to put towards the purchase if you are applying for a 95% loan. That’s in spite of the fact that you applied for a larger percentage of the purchase price!

Some lenders allow you to capitalise the LMI premium on top of the loan up to 97%, or even 100% of the purchase price. This allows you to use the 95% for which you applied towards paying for the house!

You also have the option to pay monthly LMI with one of our lenders.

Please call us on 1800 771 900 or enquire online for an LMI interest rate quote specific to your situation.

A wide variety of bank and non-bank lenders offer no deposit finance with the help of a guarantor.

These lenders include:

Our panel of lenders tend to offer special discounts from time to time so the “best” no deposit lender changes each month.

You should consider whether a no deposit solution is really in your best interests.

This is particularly true if you already have the savings you need or you’re in a good financial position and can save a deposit in a relatively short amount of time.

Although we have strong negotiating power, consider the following:

How do I apply for a no deposit home loan?

As your specialist no deposit mortgage broker, we are here to help!

Contact us on 1800 771 900 or enquire online and we can then discuss your situation with you to see if no deposit finance with the help of a guarantor is suitable for you.

We can also help you prepare to apply for a home loan in the future if you don’t qualify for a loan at the moment.

If you’re eligible, then we can usually organise an approval over the phone with one of the lenders on our panel.

Still have questions? Feel free to comment below and we’ll get back to you as soon as possible.