Deposit Options Explained: Cash, Equity and Guarantor Support for Home BuyersDollars and Distractions with Maryanne Elliott and Bec WatsonWhen most people think about a home deposit, they think of one thing: cash in the bank. But in reality, there can be more than one way to come up with a deposit when buying property.In this episode of Dollars and Distractions, Maryanne Elliott and Bec Watson unpack the different ways buyers can fund a deposit, from cash savings through to usable equity and guarantor support.They also explain why many buyers assume they need a full 20% deposit, when that is not always the case.This episode is a practical and easy-to-understand conversation about how deposits really work, what lenders look for, and why having the right loan structure matters. Whether you are a first home buyer, planning your next purchase, or thinking about using equity to invest, this episode will help you understand your options more clearly.In This EpisodeMaryanne Elliott and Bec Watson discuss:what a deposit actually means when buying propertywhy a deposit is not always just cash savingshow equity in an existing property can be used as a deposithow lenders calculate usable equitywhy most lenders only allow borrowing up to 80% of a property’s value without LMIhow guarantor loans can help first home buyers get into the market soonerthe difference between separate lending structures and cross-collateralisationwhy loan structure can impact flexibility and future financial decisionswhy a conversation with a broker can uncover options you may not know you haveEpisode Summaryn this episode, Maryanne Elliott and Bec Watson break down one of the most common misconceptions in property finance: that a home deposit must always be saved in cash.They explain how buyers may be able to use equity from an existing property instead of relying solely on savings, and why this can be a powerful strategy for people looking to upgrade, invest, or buy again.Maryanne and Bec also walk through how usable equity is calculated and why lenders typically keep a buffer by only allowing access up to 80% of a property’s value.The conversation also covers guarantor support, including how parents may be able to help first home buyers purchase sooner by using equity in their own property as additional security. Maryanne and Bec explain that while guarantor loans can be a great short-term option, the long-term goal is usually to remove the guarantor as soon as possible.They also dive into the importance of loan structure, including the difference between keeping loans separate versus cross-collateralising properties, and why the right setup depends on your goals, future plans and overall strategy.The key takeaway from this episode is simple: the deposit you think you need may not be the only option available to you.ey TakeawaysA property deposit does not always have to be cashEquity can sometimes be used instead of savings for a new purchaseGuarantor loans may help first home buyers enter the market soonerNot every buyer needs a 20% depositLoan structure matters just as much as loan rateThe right strategy depends on your goals and circumstancesSound Bites“Most people think a deposit has to be cash, but there are other ways to structure it.”“You can use equity in your property to make the next purchase.”“Just because we can do something doesn’t mean we should.”“Sometimes the deposit you think you need, you might already have.”Chapters00:50 – Intro: what comes to mind when you think about a deposit?01:22 – Deposit options beyond cash01:47 – What equity actually means03:20 – How usable equity is calculated04:32 – Using equity to buy again06:33 – Guarantor loans explained08:42 – Why you do not always need a 20% deposit10:19 – Matching lender policy to your goals14:50 – Structuring loans using equity17:26 – Cross-collateralisation and the risks19:23 – Using equity for renovations and other purposes21:33 – Why it all starts with a conversationAbout the PodcastDollars and Distractions with Maryanne Elliott and Bec Watson is a podcast that breaks down property, lending and money topics into practical, real-life conversations. With a mix of industry knowledge and honest discussion, Maryanne and Bec help listeners better understand the finance side of buying property and making smart money decisions.SEO Keywordsproperty deposit options, home deposit Australia, using equity as a deposit, guarantor home loan Australia, first home buyer deposit help, usable equity explained, mortgage broker Australia, cross collateralisation explained, how much deposit do I need to buy a house, buying property with equityMeta DescriptionCan you buy property without a cash deposit? In this episode, Maryanne Elliott and Bec Watson explain deposit options, equity, guarantor loans and smarter ways to buy.If you'd like, I can also turn this into a podcast page version, a shorter Spotify/Apple version, or a YouTube ...
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22 min