A 100% home loan allows you to borrow the full purchase price of a property meaning you don’t have to save the deposit which is usually 5% of the purchase price. This means you only need to save the funds to cover the transaction costs such as legal fees and any statutory charges such as stamp duty.

Until recently you may be able to get approved for a loan of 100% of the purchase price of the home if you can have a family member willing to both offer their home as security and act as a guarantor on the loan.

Home Loan Connexion have recently entered into an agreement to distribute the products of Granite Home Loans, a specialist lender, giving us access to a 100% home loan product for the purchase of owner-occupied homes, freeing eligible borrowers from needing to save for a deposit or purchase Lenders Mortgage Insurance.

Who is this 100% Home Loan product designed for?

According to Craig Mackenzie, co-founder and director of Granite Home Loans, the new offering is targeted at industry professionals:

“There are many high quality potential homeowners out there with a fantastic education behind them and a great career ahead of them, who are able to afford to repay a home loan but who probably haven’t seen home ownership as something that is realistically attainable for them in the immediate future,” said Mackenzie.


“Our vision is to help those high credit quality professionals that current mortgage solutions may not be fully catering for by giving them an alternative to enter the market sooner, if that is the path they wish to take.”

Granite intends for the product to not only meet the needs of young professionals looking to enter the market for the first time, but also those starting over with minimal savings, whether after a relationship breakdown, illness, or other extenuating circumstance.

About the Loan

Granite’s 100% home loan solution does have a slightly higher interest rate and more expensive establishment fee than the mainstream lenders. However, there is no Lenders Mortgage Insurance payable, which could be as much as $16,000*. Even with the higher rate and the establishment fee there are significant savings to be had in the short term.

So, once you have your home loan in place your focus needs to be on reducing the debt to enable you to move to a lower rate of interest when you have built some equity.

Who is Eligible?

To be eligible applicants need to meet the following criteria:

• University Educated (bachelor degree and higher).
• Minimum 3 years same industry (no minimum in current job as long as they’re off probation).
• Australian Citizen / Permanent Resident – living and working in Australia.
• Owner Occupied property / purpose.
• Clean Credit history – minimum Veda 650.
• Professional Industries – Legal, Medical, IT, Telecommunications, Engineering, Accounting / Finance etc.

To find out whether you qualify for a 100% mortgage and to work out if it right for you talk with one of our Finance Brokers today. You can email us or call us on 1300 888 299.

General Advice Warning *LMI based upon a purchase price of $500,000 and a 95% loan with lenders mortgage insurance capitalised. This information is not designed to replace professional advice. It has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the advice, in light of your own objectives, financial situation or needs before making any decision as to what is appropriate for you.

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Finance Education NEWS – The NO Deposit Home Loan For Professionals