Struggling to qualify for a home loan on your own? There may be some other ways to secure your first home! Here are 5 popular strategies that may help you.

Property prices are still high and rising in a lot of major cities, so the dream of owning a home can sometimes feel like it’s moving further out of reach for many Australians.

However, for savvy buyers, there are still plenty of ways to get your foot in the door. Thinking outside the box… here are some ideas.

1. Buy with a friend or relative

Consider buying with a loved one or friend. It’s simple, you can split the cost of the deposit and the loan, which make it easier for you to both qualify for the loan with your bank and meet the loan responsibilities.

Before going ahead with this option, it might be worth getting professional advice. It’s best to do so, so that you have an exit plan and preparation for unexpected events such as job loss or getting sick.

Check out Horizon’s range of Home Loans or reach out to a lender today to discuss this option more.

2. Get a guarantor loan

A guarantor loan means the involvement of a third party – this is usually a parent, extended relative or friend. They put  their own assets against your loan as a guarantee. This will give your lender security in case, for some reason, the loan can’t be repaid.

While guarantor loans are good to help those who don’t otherwise qualify for a loan, it comes with risks for the guarantor. If you’re unable to pay the loan back, the lender can ask the guarantor to pay the loan. If they can’t repay the loan, their assets can be repossessed.

At Horizon Bank we have a Family Equity Loan, which allows family members to use the available equity in their home or investment property to provide additional security to help cover any borrowing shortfalls between the deposit and loan amount. Reach out to one of our lenders today to learn more, or enquire now online.

3. Consider rentvesting

If you’re not able to buy your dream home because you can’t afford it, you could consider investing in a property to rent out at a smaller cost, therefore getting a smaller loan, and renting yourself somewhere else in your preferred area that suits your lifestyle choices. This gives you the opportunity to own a property. Often, owners will use the rental income they earn to pay off their loan, and sometimes even help cover their own rental costs, as well as helping with other property-related expenses. You may want to consult with an accountant to learn about any tax benefits (negative gearing).

There is a risk of over-committing with this strategy. The costs may end up outweighing the income your property generates, so it’s very important that you do the math beforehand and work out your budget.

You can use our budget calculator to assist in budgeting.

If you’re thinking about buying an investment property, check out Horizon’s investment loans.

4. Look farther afield

Regional areas are rapidly growing and can often offer similar lifestyle opportunities at a lower cost. Consider a change in scenery if moving is an option for you, and move somewhere where a property market hasn’t caught up to the likes of major cities yet.

Regional home buying has been trickier for buyers in the past, with concerns of a move somewhere regional or to the country could hamper their links to city-based employers. This in a post COVID era is an issue that has evaporated, thanks to new technology and more flexible work opportunities.

5. Take advantage of incentive schemes

There are a number of national, state and territory based incentive schemes to check out, depending on where you plan to buy and/or live, that can help you get started. These include:

  • First Home Owner Grant – Eligible first-home buyers that are planning to live in their property can get a grant of between $10,000 and $30,000. This scheme is funded by states and territories.
  • Help to Buy – This scheme is set to arrive later in 2024, and is when the federal government offers eligible buyers a contribution of up to 40% of a home’s cost, in exchange for a proportional equity.
    NOTE: This scheme will only be available to a limited number of prospective homeowners.
  • First Home Super Saver Scheme – This program allows savers to build up their deposit within super while benefiting from tax concessions. Up to $50,000 can be saved up in the borrower’s super account and they can withdraw it once they are ready to apply for their loan.
  • Other state and territory based schemes – Different jurisdictions have slightly different approaches in helping first-time buyers, so it’s worth checking your state and territory websites to see what they can offer.


The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant Product Disclosure Statement and Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.