100% Home Loans Still Exist!
Since the Global Financial Crisis in 2008, 100% mortgages have mostly disappeared from the lending market.
A few companies still offer these loans in Australia under strict conditions. They are variable-rate mortgages over a 15 or 30 year period and are only available for property zoned “Residential” or “Urban.” This type of loan carries more risk and higher fees than a standard mortgage with a bank or building society. There is also a higher chance of property repossession.
If you are a high-income earner and have a good credit history, then there is an alternative option. Your bank might be willing to lend you a 95% mortgage with a 5% personal loan as a deposit. You will still need extra savings to cover your legal costs and fees. To pursue this option, you must be able to cover both loan repayments and have money leftover for everyday living.
A 100% mortgage is a big commitment. We only recommend considering it after you explore and discount all the alternatives.