Innovative 105% no-deposit home loans are emerging as a swift pathway to home ownership. First homebuyers can save more than $1 million and get onto the property ladder up to 10 years faster than the Australian average using no-deposit finance.
According to home lender Empower Money, no-deposit finance is attracting a diverse demographic of first homebuyers from as young as 20 and up to 50 years old, as multiple generations all battle the deposit obstacle.
It now takes first homebuyers around 10 years to save a deposit. During that time, property prices can rise by up to 70%, with the average Sydney house price jumping from $1 million to $1.692 million over the last 10 years.
Empower Money says that most first homebuyers would pay $320,000 in rent while saving a deposit, while the property price would rise by approximately $692,000 during this time.
“It’s definitely time for change. People are struggling with the housing crisis and inflation. Home ownership shouldn’t just be for high income earners. People with solid incomes who meet serviceability criteria should be able to buy now, without a deposit, and start building equity,” said Empower Money’s Executive Chairman, Peter Khoury.
‘PowerUp Elite’, Empower Money’s industry-leading 105% home loan, levels the playing field by removing the deposit requirement and lending the full purchase price plus the associated risk fee.
While the age of the average Australian first homebuyer is 37, many Empower Money clients are in their 40s and have found themselves increasingly locked out of the market. These buyers are typically trying to save while juggling rent payments and often also have additional costs of raising a family.
“With rising property prices meaning even larger deposits are needed, first homebuyers are trapped in an endless cycle of saving. And it’s not just young people who are stuck in this cycle, but those in their forties and fifties too. A first homebuyer is behind by $1 million before they make their first mortgage repayment, when price rises and longer periods of paying rent are factored in,’ Mr Khoury said.
By removing the deposit, PowerUp Elite also enables first homebuyers to start building equity faster.
Empower Money reveals that by buying a home 10 years faster, equity grows more rapidly while the loan is paid down quicker.
For example, a $1 million Sydney property bought in 2015 using a 105% loan paid over a 30 year loan term would be worth $3,243,400 in 2045 – based on value growth of 4% per annum.
By contrast, a buyer who saved for 10 years to purchase the same home in 2025, using a loan with the same term and interest rate, would accrue only $2,480,035 in equity over the same 30-year period, missing out on the first 10 years of property value growth.
This equity could be leveraged into a renovation or another property purchase – helping buyers build wealth for their retirement.
Case Study – Rabish and Kiran
45-year-old tech specialist Rabish Kumar and his 42-year-old partner Kiran Tiwari migrated from India to Australia in 2021. Before they discovered Empower Money, they were living in a rental in Sydney’s Sutherland Shire.
They wanted to buy a block of land and build their own home, but struggled to save enough money for a deposit, and the longer they tried to save, the higher land prices rose. Being in his 40s, Rabish was also worried that the older he got, the harder it would be to secure a loan – so time was becoming critical.
“I was researching a lot, trying to figure out our home loan options. That’s when we discovered Empower Money. When I saw that they offered a 105% loan, I was hesitant at first – it seemed too good to be true,” said Rabish.
However, when the couple met with the Empower Money team, they quickly learned they were eligible. Empower Money’s 105% loan allowed them to secure the house and land package they wanted fast, without needing to drain the savings they’d carefully built over several years.
“Not only did they help us to secure a house and land package without a deposit, but they also fast-tracked the pre-approval process so we could buy sooner – before prices rose again,” Rabish added.
The couple bought a block of land in Tahmoor in the Macarthur Region in Sydney’s south-west and are now building a large four-bedroom house. They love its family-sized backyard and location, with easy connectivity to the CBD yet away from the hustle and bustle.
“I don’t think we could have done this if it wasn’t for the 105% loan. It would have taken us years to save the deposit, but land costs would have risen during that time and we would have been priced out,” said Kiran.
“Empower Money made the loan process very straightforward, explaining everything in great detail and guiding us every step of the way. We’ve had a wonderful experience with them,” said Rabish.
