Home with $0 Upfront – See What’s Possible In Australia

Buy apartment with no down payment options in Australia are becoming more accessible thanks to new government schemes, developer incentives, and rent-to-own models.

Buy Apartment with No Down Payment in Australia: Real Options in 2025

Buying a property in Australia has long been considered out of reach for many — especially first home buyers without tens of thousands saved for a deposit. However, in 2025, buy apartment with no down payment pathways are available through various federal and state-backed initiatives, as well as private developer programs. These alternatives are helping Australians, particularly young professionals and low-to-mid income households, access the property ladder.

In this article, we break down the real no-deposit property purchase options available in Australia, how they work, who qualifies, and what you need to know before signing anything.

1. Is It Possible to Buy an Apartment in Australia with No Deposit?

Yes — but not in the traditional sense of borrowing 100% of a home’s value from a bank. Instead, no-deposit paths in Australia generally rely on:

• Government-backed loan guarantees
• Lenders that accept guarantors (e.g., parents)
• Rent-to-buy agreements
• Developer promotions covering deposits
• Equity-based shared ownership schemes

Each path has its own eligibility criteria and legal framework, but they’re all operational across various states as of 2025.

2. Government Support: First Home Guarantee (FHG)

The First Home Guarantee (formerly First Home Loan Deposit Scheme) is the federal government’s most important tool for first-time buyers.

• Deposit required: As low as 5%
• No Lenders Mortgage Insurance (LMI): Government acts as guarantor
• Income cap (2025):
  • $125,000/year for singles
  • $200,000/year for couples
• Property price caps: Vary by region
  • Sydney: $900,000
  • Melbourne: $800,000
  • Brisbane: $700,000

While this program doesn’t completely remove the need for a deposit, many buyers use developer rebates to make up the 5% requirement, effectively buying with no personal savings.

✅ Tip: Pair the First Home Guarantee with a $10,000 First Home Owner Grant (FHOG) in states like Queensland or Victoria for added support.

3. Guarantor Loans – Family Pledge

Major lenders like CBA, NAB, and Westpac offer 100% LVR loans with a parental guarantee. This means:

• No deposit needed from buyer
• A family member uses their own property as security
• Available for owner-occupied properties (including apartments)

Pros:

• Immediate access to property
• Avoids LMI

Cons:

• Risk for the guarantor if repayments fail
• Not all lenders offer this structure in 2025

4. Developer Offers and Cashback Promotions

Many apartment developers now offer structured deals that significantly reduce or remove the deposit burden. These often include:

• “$0 Deposit Until Settlement” campaigns
• 5% upfront, 5% cashback at settlement
• Deposit paid in instalments over 6–12 months

Examples of active developers (2025):

• Mirvac: In select Brisbane and Melbourne projects
• Frasers Property Australia: Offers flexible deposits in NSW
• Metricon Apartments: “Deposit Now, Pay Later” options for off-the-plan builds

💡 In off-the-plan purchases, the deposit is often smaller, and settlement may be 12–24 months later — giving buyers time to secure funds.

5. Rent-to-Own & Shared Equity Schemes

a) Rent-to-Own Programs

Private companies like OwnHome and Livenest offer rent-to-own agreements in Sydney and Melbourne:

• You rent the property for 2–5 years
• A portion of your rent builds your future deposit
• At the end of term, you purchase the property at a pre-agreed price

b) Shared Equity Schemes

• In Victoria: Victorian Homebuyer Fund allows the state to co-purchase up to 25% of your home
• In WA: Keystart Loans offer low-deposit (2%) loans for eligible applicants
• In NSW (2025 trial): Shared equity pilot with key workers contributing 70% while the government funds 30%

These models drastically reduce or remove the need for a traditional deposit.

6. Case Study: How It Works in Practice

Sophie, 29, from Melbourne:

• Works as a nurse earning $78,000/year
• Used First Home Guarantee + Frasers 5% deposit match
• Purchased a $620,000 apartment in Footscray
• Out-of-pocket upfront: $0
• Monthly repayments: ~$2,800

This structure allowed Sophie to avoid saving the $31,000 (5%) deposit and move in sooner.

7. What’s the Catch?

While these programs are real and legal, it’s essential to be aware of:

• Longer-term costs: No deposit = higher mortgage
• Risk to guarantors: With family pledge loans
• Lack of flexibility: Rent-to-own contracts are binding
• Property type limits: Not all programs cover apartments; check eligibility
• Time-sensitive offers: Developer rebates may be temporary

8. Who Qualifies?

Most programs still require stable employment and a clear credit history.

9. Extra Incentives by State (2025)

• NSW: $10,000 FHOG, no stamp duty for homes up to $800k
• VIC: Shared equity fund + FHOG
• QLD: $30,000 FHOG for new homes (2025 increase)
• WA: Keystart loans starting at 2% deposit
• SA: Developer-led “no deposit” off-the-plan offers

Conclusion: You Can Buy with $0 Upfront — If You Know Where to Look

Buying an apartment with no down payment in Australia is no longer a fantasy. In 2025, real government schemes, developer incentives, and alternative financing models are opening doors to homeownership for thousands.

Whether you’re a first-time buyer, a renter trying to break out of the cycle, or someone with income but no savings — there’s a structured path forward.