Can I Buy My First Home With No Deposit Using a Guarantor?

🏡 Customer Spotlight: How Riley & Noah Bought Their First Home Using a Guarantor Loan (and Moved In Before Christmas!)

Here’s how they did it—and how you may be able to do the same.

⭐ The Challenge: Not Quite Enough Deposit to Buy Their First Home

Like many first home buyers, Riley and Noah were in a strong financial position but didn’t yet have the full deposit needed to purchase or build their first property.

They didn’t want to wait years to save more.
They didn’t want to delay buying until they found partners or got married.
And they didn’t want to sit on the sidelines while property prices continued to rise.

They wanted a way to enter the market now—together.

That’s where a family guarantor loan came in.

👨‍👩‍👧‍👦 The Game Changer: Using Their Parents’ Property as Guarantor

To help Riley and Noah get into their first home sooner, Mum and Dad offered their own property as a guarantee for the loan.

This structure allowed the siblings to:

✔ Avoid paying Lenders Mortgage Insurance (LMI)
✔ Avoid needing a much larger deposit
✔ Qualify for the loan sooner
✔ Maximise their borrowing capacity
✔ Enter the property market at a time that suited them

Best of all—there were no upfront costs to Mum and Dad.
And as part of our review, we were able to refinance their parents’ home to a more competitive interest rate.

🎁 Taking Advantage of the First Home Buyer Incentives in Queensland

With a guarantor structure in place, Riley and Noah were able to unlock additional government benefits:

1. QLD First Home Buyer Stamp Duty Concession – Saving Thousands

Because they were purchasing their first home and met the eligibility criteria, they were able to access the stamp duty concession, reducing the upfront buying costs to almost zero.

2. QLD First Home Owner Grant (FHOG) – $30,000 Toward Their New Build

Since their property was a brand-new build, they also qualified for the QLD FHOG, which provides $30,000 toward eligible new homes.

Typical FHOG eligibility criteria includes:

• Applicants must be Australian citizens or permanent residents

• Must be buying or building a brand-new property valued under the scheme cap

• Must live in the property as their principal place of residence for a minimum period

• Must not have previously owned property in Australia

These incentives made it far easier for the siblings to afford their ideal home—and do it sooner than expected.

🏠 The Result: A Brand New Home… Just in Time for Christmas

After months of planning, building, and working through approvals, Riley and Noah received their keys and are now officially first home owners.

The move-in timing couldn’t be better—they’re celebrating Christmas in their brand-new home.

Meanwhile, their parents are enjoying a more competitive interest rate on their refinanced loan, secured during the process with Mortgage Matrix.

📈 What Happens Next? Reviewing Equity & Releasing the Guarantor

As the new property gains value, Riley and Noah will build equity through:

• Market growth

• Loan repayments

• Value uplift from the new build

At Mortgage Matrix, we'll conduct their first valuation review in six months, then again annually.

Based on current projections, we expect they will have enough equity to remove Mum and Dad as guarantors within three to five years, allowing:

• Their parents’ security to be fully released

• Riley and Noah to own their property independently

• The family guarantee to conclude without any financial cost to the parents

This is the ideal outcome for all involved.

❤️ Why Family Guarantor Loans Are Helping More First Home Buyers

For clients who don’t want to wait years to save a 20% deposit, a guarantor loan can open the door to:

• Faster entry into the property market

• Zero LMI

• Lower upfront costs

• Higher borrowing power

• The ability to buy or build sooner

For many families, it’s a smart, safe, and structured way to help the next generation without handing over cash.

🔍 Thinking About Buying With a Sibling or Using a Guarantor?

Whether you're buying with a sibling, partner, or on your own, Mortgage Matrix helps first home buyers navigate:

✔ Family guarantee structures
✔ Low-deposit loans
✔ First home buyer schemes
✔ Stamp duty concessions
✔ First Home Owner Grants
✔ Lender policy comparisons
✔ Borrowing capacity planning

If you're exploring your options, we’d love to help.

📞 Ready to Get Started? Book a Free Appointment

Buying your first home is a big milestone — but you don’t have to do it alone.

👉 Book a free appointment here:
https://www.mortgagematrix.com.au

Let’s help you take your first step onto the property ladder.