Buying an investment property in Australia without a cash deposit sounds impossible — but it’s more achievable than most people realise. There are several legitimate strategies that allow you to get into the market with little to no money out of your own pocket.
This guide covers every realistic option available to Australian investors in 2026, including which strategies work, which ones are overhyped, and exactly what each requires from you.
Strategy 1: Use Equity in Your Existing Home
This is the most common “no money down” strategy for Australians — and unlike most no-deposit tactics, it genuinely works at scale.
If you own a home that has increased in value, you may have usable equity — the difference between what your home is worth and what you owe on it. Most lenders let you borrow up to 80% of your property’s value without paying Lenders Mortgage Insurance (LMI). The portion above your mortgage is “usable equity” that you can access as a loan to fund a deposit on an investment property.
How it works: Say your home is worth $900,000 and you owe $450,000. Your lender allows borrowing to 80% of value = $720,000. Your current debt is $450,000. Usable equity = $720,000 − $450,000 = $270,000. That $270,000 can be drawn as a separate loan (equity loan) and used as the deposit and purchase costs for an investment property — without using any cash savings.
What you need: An existing property with sufficient equity and the serviceability to carry both the equity loan and the new investment mortgage.
Learn more: How to Use Home Equity to Buy an Investment Property in Australia
Strategy 2: Guarantor Loan (Family Pledge)
A guarantor loan allows a family member (typically a parent) to use the equity in their own property as security for your loan. This means you can borrow up to 105% of the purchase price — covering the deposit AND purchase costs — without needing any cash savings.
How it works: Your lender takes security over both your investment property AND a portion of your guarantor’s property. The guarantor doesn’t provide cash — they provide their property as collateral.
Requirements:
- A willing family member with sufficient equity (typically a parent or sibling)
- The guarantor must be able to afford to take on the guarantee obligation
- Strong income/serviceability from the borrower
- Most lenders only offer guarantor loans to immediate family
Risk for the guarantor: If you default, the lender can pursue the guarantor’s property. This is a significant commitment and should be documented and discussed with a lawyer before proceeding.
Strategy 3: Rentvesting
Rentvesting means renting where you want to live while owning investment property in a location where the numbers make sense. It’s not strictly “no money down” — you still need a deposit — but it allows you to get into the property market much sooner by buying in more affordable markets while renting in expensive ones.
A first-home buyer in Sydney who can’t afford a $1.2M house might be able to afford a $450,000 townhouse in Brisbane or a $380,000 house in Adelaide. The First Home Owner Grant and some stamp duty concessions still apply in most states for first-time buyers of investment properties if you intend to live in them initially — check your state’s rules carefully.
Learn more: Rentvesting in Australia: The Complete Guide
Strategy 4: Joint Venture with Another Investor
A joint venture (JV) involves partnering with another person — a friend, family member, or experienced investor — to purchase a property together. You split the deposit, costs, and returns according to your agreement.
In some JV structures, one party provides the capital (deposit) and the other provides labour (finding the deal, managing the renovation, finding tenants). This allows someone with no cash to contribute their skills and time rather than money.
Critical requirement: JVs must be documented with a formal legal agreement covering ownership structure, decision-making, what happens if one party wants to exit, and how profits are distributed. Never enter a property JV on a handshake.
Strategy 5: Vendor Finance
In rare cases, a vendor (seller) will agree to finance part or all of the purchase themselves — meaning they accept a smaller or no upfront payment and instead receive payments from you over time. This is uncommon in Australia’s residential market but does exist for some off-market deals, rural properties, and motivated sellers.
How it works: Instead of you borrowing $500,000 from a bank, the vendor agrees to “carry” $100,000 of the purchase price as a personal loan to you. You pay the bank for the other $400,000 and pay the vendor separately for their $100,000 portion.
Vendor finance arrangements require careful legal structuring and are complex to execute — but they can remove or reduce the deposit requirement in specific circumstances.
Strategy 6: Deposit Bonds
A deposit bond is a guarantee (not cash) that you will pay the deposit at settlement. It’s used at auction or exchange of contracts when you don’t have the cash deposit available immediately — because you’re selling another property, or funds are tied up elsewhere.
Deposit bonds don’t eliminate the need for a deposit at settlement — you still need the funds when settlement occurs. But they bridge the gap between exchange and settlement (typically 30–90 days), allowing you to secure a property before your funds arrive.
Cost: typically 1–1.3% of the deposit amount for up to 6 months.
Strategy 7: SMSF Property Purchase
If you have superannuation savings, you can use a Self-Managed Super Fund (SMSF) to purchase investment property using a Limited Recourse Borrowing Arrangement (LRBA). Your super balance acts as the deposit — you’re not using personal cash.
This isn’t technically “no money” — you’re using your super — but it’s a legitimate way to invest in property without using money you have in your bank account. Many Australians don’t think of their super as accessible, but for property investment purposes within an SMSF, it is.
SMSF property investment is complex and has strict rules — see our detailed guide: SMSF Property Investment Australia: How It Works
What Doesn’t Work: Strategies to Avoid
Several “no money down” strategies marketed online are either illegal in Australia, don’t work as claimed, or carry extreme risk:
- Inflated valuations / over-valuation schemes: Claiming a property is worth more than it is to get a larger loan than the actual purchase price. This is mortgage fraud.
- “Secret” bank strategies: Claims that banks have hidden programs to lend 100%+ without LMI. These don’t exist in the Australian lending market for residential investment.
- Creative cashback schemes: Arrangements where the vendor gives you a “cashback” at settlement to cover your deposit. These must be disclosed to your lender and are treated as a reduced purchase price — most lenders won’t lend against them.
- Lease-option schemes from seminar spruikers: Some property education companies sell complex lease-option strategies that look good on paper but rarely execute cleanly in the Australian market.
The Deposit You Actually Need
For most Australians, the most realistic path to property investment with minimal cash is either the equity route (existing homeowners) or saving a genuine 10–20% deposit. The “no deposit” strategies above are real, but most require either existing assets, family support, or specific circumstances.
If you’re starting from zero, here’s a realistic deposit target:
- 5% deposit + LMI: Minimum entry — LMI can add $15,000–$30,000 to loan costs on a $500k property
- 10% deposit: Lower LMI cost, more lenders available
- 20% deposit: No LMI, best rates, most lenders — the standard benchmark
Use our Investment Property Deposit Calculator to work out exactly how long it will take to save your deposit based on your income and expenses.
Frequently Asked Questions
Can I buy an investment property in Australia with no deposit?
Yes — but only in specific circumstances. The most common legitimate method is using equity in an existing property as the deposit, or a guarantor loan from a family member. Without existing assets or family support, a conventional deposit (10–20%) is almost always required by lenders.
What is the minimum deposit for an investment property in Australia?
Most lenders require a minimum 10% deposit for investment properties in 2026. Some lenders will accept 5% with LMI. Investment loans typically have stricter deposit requirements than owner-occupier loans — 20% is the standard that avoids LMI and gets the best rates.
Can I use my superannuation as a deposit for an investment property?
Not directly — you can’t withdraw super to fund a personal investment property deposit. However, you can establish an SMSF and use your super balance within the SMSF to purchase an investment property via a Limited Recourse Borrowing Arrangement. This is a complex strategy requiring specialist advice.
Is “rentvesting” a good strategy for first home buyers?
Rentvesting works well for people who want to live in an expensive city (Sydney, Melbourne) but can afford to buy in a more affordable market. It allows you to build wealth through property ownership while renting in your preferred location. The trade-off is you don’t build equity in your home and may lose access to some first home buyer concessions depending on how you structure it.
One Property at a time.
General Advice Warning: This article is general in nature and does not constitute personal financial advice. Please consult a licensed financial adviser before making investment decisions.
