The idea of buying investment property with “no money down” sounds too good to be true — but it's more achievable than most people think, particularly if you already own property or have a supportive family network.
That said, it's important to be realistic: these strategies don't eliminate financial risk — they restructure where your equity or security comes from. Some involve drawing on existing equity, others involve family risk, and a few require a small cash contribution.
Here are the five strategies that genuinely work in Australia's 2026 lending environment.
Important: Stamp Duty and Upfront Costs Still Apply
Even with a “no money down” strategy, investment property purchases still attract stamp duty and other costs (legal fees, inspections, loan fees). Stamp duty on investment properties typically ranges from $15,000–$40,000+ depending on the state, property price, and whether it's new or established. Unlike owner-occupiers, investors generally do not qualify for stamp duty exemptions or concessions (except for some off-the-plan and new-build concessions in certain states). Factor these costs into your total purchase budget.
Disclaimer: This article is general information only and does not constitute financial, legal, or tax advice. Property investment involves risk, including the potential for capital loss. Lending criteria, government schemes, and tax rules change frequently. Always consult a qualified mortgage broker, financial adviser, and/or solicitor before making investment decisions based on information in this guide.
Using Equity From Your Existing Property
If you already own a home (or investment property), the equity you've built up can be used as a deposit for your next purchase — without touching your savings.
How it works
Lenders allow you to borrow against your equity up to 80% LVR (Loan-to-Value Ratio). The difference between 80% of your property's value and your current loan balance is your “usable equity”.
Worked Example
This $240,000 can be accessed as a deposit for an investment property — effectively allowing you to buy without any cash deposit.
LVR requirements
Most major lenders allow equity release to 80% LVR without requiring Lenders Mortgage Insurance (LMI). Some specialist lenders will go to 90% LVR with LMI. The equity drawn is typically structured as a separate loan against your existing property, or as an increase to your existing line of credit.
Use our Equity Unlock Calculator to find exactly how much usable equity you have at 80% LVR across multiple properties.
- You must have sufficient equity in your existing property (typically 20%+ equity above your current loan)
- Your serviceability must cover repayments on both the existing mortgage and the new investment loan
- The investment property itself still needs to be purchased at an appropriate price relative to its own LVR
- Keep records of your loan purpose — ATO may have different treatment for interest deductibility on mixed-purpose loans
Guarantor Loans
A guarantor loan allows a family member (typically a parent) to use their own property as additional security for your loan. This means you can borrow 100% of the purchase price without a cash deposit — and in some cases, stamp duty and purchasing costs can also be included in the loan.
How it works
The guarantor offers their property as security for the gap between your deposit and 20% of the purchase price. For example, if you're buying a $600,000 property with no deposit, the lender holds security over both your investment property and a portion of your guarantor's property.
Risks for the guarantor
Important: Guarantors carry real risk
- If you default on the loan, the lender can pursue the guarantor's property
- The guarantor's borrowing capacity may be reduced while the guarantee is in place
- The guarantee typically remains until the loan falls below 80% LVR through repayments or capital growth
- This arrangement can create family tension if financial difficulties arise
Eligibility criteria (most lenders)
- Guarantor must own Australian property with sufficient equity
- Guarantor typically must be a direct family member (parent, sibling, spouse)
- Guarantor must be able to demonstrate they understand the obligation (many lenders require independent legal advice)
- Borrower must still meet serviceability requirements for the full loan amount
- Most guarantors must be under retirement age or demonstrate the guarantee won't impact their retirement
Rentvesting With 10% Deposit
Rentvesting is the strategy of renting where you want to live while buying an investment property in a more affordable market. It's one of the most accessible paths to property investment for young Australians priced out of their home city.
How rentvesting works
Rather than saving a 20% deposit for a $1.2M Sydney or Melbourne property — which could take 10+ years — you buy a $400–600k investment property in a city with strong rental yields and growth fundamentals, while renting in the city you work in. The rent you receive on your investment property partly offsets your rental costs.
LMI and 90% LVR investment loans
While standard investment property loans require 20% deposit, select lenders will approve 90% LVR investment loans — meaning you only need 10% deposit plus costs. This comes with Lenders Mortgage Insurance (LMI) which adds 1–3% to your loan depending on LVR and loan size.
Estimated LMI costs at 90% LVR (indicative)
LMI can be capitalised into the loan. Figures are indicative only.
Use our Borrowing Capacity Calculator to see how much you can borrow for an investment property based on your current income.
Joint Ventures and Co-Investment
Co-buying with a friend, sibling, or business partner lets you pool resources and enter the market sooner. Each party contributes to the deposit, which means each person needs to save less individually.
Legal structure: Tenants in Common vs Joint Tenants
Tenants in Common
- Each party owns a defined percentage (e.g. 50/50 or 60/40)
- Each share passes independently in a will
- Can be sold or transferred independently
- Recommended for investment co-purchases
- Allows unequal ownership based on contribution
Joint Tenancy
- Both parties own the property equally (50/50)
- Right of survivorship — share passes to co-owner on death
- Cannot sell your share without the other's consent
- More common for couples and spouses
- Less flexible for investment arrangements
Exit provisions — plan before you buy
The most common cause of joint venture disputes is the lack of a written exit agreement. Before purchasing together, document:
- What triggers an exit (e.g. one party wants to sell after 5 years)
- How the property will be valued if one party wants to buy out the other
- What happens if one party can no longer service their share of the mortgage
- How decisions about property management, renovation, and sale are made
Legal disclaimer: Joint venture property structures are complex and jurisdiction-specific. Always seek independent legal and financial advice before entering a co-purchase arrangement. This guide does not constitute legal advice.
Government Shared Equity and Schemes
Australian federal and state governments offer several schemes to assist buyers — though most are designed for owner-occupiers, not investors. Here's what's actually available.
Help to Buy (Federal — Proposed)
The federal government's proposed Help to Buy scheme would allow eligible Australians to co-purchase with the government (up to 40% for new homes, 30% for existing). The scheme has been proposed since 2023 and has faced repeated Senate delays. As of March 2026, check the latest legislative status before relying on this scheme. It applies to owner-occupiers only.
Not available to investorsFirst Home Guarantee (FHBG)
The FHBG allows eligible first home buyers to purchase with a 5% deposit without LMI, with the government guaranteeing up to 15% of the loan. Primarily for owner-occupiers. Property price caps apply and vary by location (e.g. $900k in Sydney/Melbourne, $700k in Brisbane/Perth, $600k in Adelaide — check current limits). Some lenders allow rentvesting under this scheme if you occupy the property initially, but it's complex and lender-specific.
Owner-occupiers primarilyState Shared Equity Schemes
States including Victoria (HomesVic — limited pilot, check current availability) and New South Wales (NSW Shared Equity Home Buyer Helper) operate their own shared equity schemes. These vary by eligibility, income thresholds, and property caps. Availability is often limited by annual allocations. All current state-level schemes are targeted at owner-occupiers.
Owner-occupiers onlyWhat Is Actually Available for Investors?
While most government schemes are off-limits for pure investors, some state governments offer stamp duty concessions or grants for new construction. In certain states, off-the-plan purchases attract reduced stamp duty regardless of occupancy intent. This can meaningfully reduce the upfront costs of an investment purchase.
Some state concessions availableStrategy Comparison
| Strategy | Deposit Required | Complexity | Risk | Best For |
|---|---|---|---|---|
| Using Equity From Your Existing Property | $0 cash (equity only) | Medium | Medium | Existing homeowners with equity |
| Guarantor Loans | $0 cash (guarantor provides security) | Medium | Low–Medium | First-time investors with supportive family |
| Rentvesting With 10% Deposit | 10% + LMI | Low | Low–Medium | Young professionals in expensive cities |
| Joint Ventures and Co-Investment | Split between partners | High | Medium–High | Trusted partners with complementary resources |
| Government Shared Equity and Schemes | 2–5% (scheme dependent) | Medium | Low | Owner-occupiers (note: limited for pure investors) |
Which Strategy Suits You?
Profile 1: The Existing Homeowner
You've owned your home for 5+ years, have significant equity, and want to enter the investment market.
→ Best strategy: Equity Release (Strategy 1). Use your home equity as the deposit — no cash needed.
Profile 2: The High Earner Without Savings
You earn well ($120k+), can service a loan, but lifestyle spending has kept your savings low. Your parents own their home outright.
→ Best strategy: Guarantor Loan (Strategy 2). Your serviceability plus parent's equity security unlocks borrowing without a cash deposit.
Profile 3: The Young Professional Starting Out
You're 28, renting in Sydney or Melbourne, have $40–60k saved and stable income. You can't afford to buy where you live but want to invest.
→ Best strategy: Rentvesting (Strategy 3). Buy a $400–500k property in Adelaide, Brisbane, or Perth with a 10% deposit + LMI.