PHOTO: Buyers agent Ella Cas
How This 24-Year-Old Could’ve Bought Her First Home Without Saving a Cent
🎥 Inspired by conversations with Aussie buyers and brokers who say “I wish I knew this sooner.”
Want to buy your first home without saving a cent for a deposit?
That’s exactly what Melbourne-based buyer’s agent Ella Cas, 24, says she could’ve done—if only she’d known about the power of guarantor loans. Now, she’s sharing her story to help other young buyers fast-track their way into the property market without draining their life savings.
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🏡 The Mistake That Cost Her $80,000
Ella Cas, who now works with Mecca Property Group, used the entirety of her $80,000 in savings as a deposit for her first property.
But in hindsight?
“If I could do it again, I would hold onto my cash,” she told Daily Mail Australia.
“I could have used my mum’s house as a guarantor and kept my savings to invest in shares or purchase a second property.”
📌 Also read: Young Kiwis Buying Property with No Deposit: Too Good to Be True?
Buyers agent Ella Cas says her biggest mistake when buying her first home was not using a guarantor loan
💼 What Is a Guarantor Loan, and Why Aren’t More People Using It?
A guarantor loan allows a close family member—typically a parent—to use their home equity as security for your mortgage. That means you may not need a cash deposit at all.
So why don’t more people do it?
Ella says there’s still a stigma:
“People think it’s risky because your parents’ property is on the line, but it’s actually one of the smartest ways to get into the market—especially for young professionals with strong incomes but no savings.”
Ms Cas said it’s ‘very important’ for first time investors to choose a location with a strong rental yield and a focus on capital growth
🧮 The Numbers Don’t Lie
Consider this:
For a $500,000 home, you’d need a $100,000 deposit to avoid Lenders Mortgage Insurance.
Ella says that’s just not realistic anymore:
“Most 25-year-olds, even on good incomes, can’t save that kind of money—especially with the current cost of living. Who is saving $100K these days? No one.”
Instead, she’s now advising her clients—many earning over $100K annually—to leverage guarantor loans and use their savings more strategically.
🔁 Can You Release a Guarantor Later?
Yes. Ella explains that once the property grows in value, buyers can refinance and remove the guarantor, freeing their parents from risk.
“It’s not forever. You just need the property to appreciate and your loan-to-value ratio to improve.”
📌 Read next: Best Suburbs for Capital Growth in NZ Right Now
🔑 First Time Investor? Location Matters More Than Ever
If you go down the guarantor path, Ella stresses one thing:
“Choose a location with strong rental yield and good long-term capital growth. That’s the key to success.”
And don’t forget: while you may not need a deposit, you still need to cover upfront costs like stamp duty and prove you can service the loan.
👴 Not Just for the Young: Even This 50-Year-Old Used His Mum as a Guarantor
Surprisingly, it’s not just Gen Z using this strategy.
“I had a client in his 50s use his mum as a guarantor,” says Ella.
“It’s about smart borrowing—not age.”
🏘️ Broker With 8 Properties Says: “I Should’ve Done It Too”
Mortgage broker Bill Childs, now 28 and the owner of eight properties across two states, says he also regrets not using a guarantor loan on his first purchase at 21.
“My dad had equity. I could’ve used him as a guarantor—but I didn’t. Looking back, I wish I had.”
“People worry about being judged, like you got a handout. But people say that anyway if you’re successful.”
Instead of gifting cash, Bill now encourages parents to consider using their equity to help their kids without compromising their retirement.
⚠️ A Word of Caution: Do It Right or Risk Trouble
Both Ella and Bill agree: This strategy only works if you buy smart.
“If you buy in a risky market—like a mining town—you could be stuck with negative equity,” says Bill.
“Make sure you’re not overstretching yourself with repayments either. Use this tool wisely.”
📌 Related: The Most Overhyped NZ Suburbs in 2025 – Are You At Risk?
SOURCE: THE DAILY MAIL