(Otherwise known as the 100% home loan)

A no deposit home loan is a mortgage that is given to a borrower without the requirement for the usual initial 5-20% deposit depending on the cost of the property .

The decision to lend a borrower 100% of the full purchase price of the home without a deposit is usually quite stringent and depends on evidence of a savings history and the type of property you wish you purchase (less favoured are the 1 bedroom units or newer less-developed areas).

In addition, higher interest rates and fees may also be incurred as the trade-off; these form part of the banks or credit-institutions insurance mechanism.

If possible it is probably advisable to stay away from these home loans as not only are the establishment fees higher than for regular home loans but often you will be also made to pay for mortgage insurance a cover for the lender should you default on your repayments.

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