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  • Writer's pictureRicky Gandhi

Exploring the Prospects of a 100% Mortgage: How Much Can You Borrow?

Updated: Jun 27, 2023

When it comes to purchasing a home, many prospective buyers face the challenge of gathering a sizable down payment. Traditionally, this meant saving around 20% of the property's value to secure a mortgage. However, for those with limited savings, a 100% mortgage presents an enticing alternative. This type of mortgage allows borrowers to obtain the entire purchase price without a down payment. In this blog post, we will explore the concept of a 100% mortgage and delve into the question of how much one can borrow through this arrangement.

100% Mortgage

Understanding a 100% Mortgage

A 100% mortgage is a financing option that enables borrowers to secure a loan equivalent to the full value of the property they wish to purchase. This eliminates the need for a down payment, making homeownership more accessible to individuals without substantial savings. While this option may seem attractive, it is essential to grasp the factors that influence your borrowing capacity within the framework of a 100% mortgage.

Factors Impacting Borrowing Capacity

Lending Criteria: Lenders have specific criteria for evaluating eligibility for a 100% mortgage. These criteria encompass credit scores, income stability, employment history, and affordability assessments. Fulfilling these requirements is crucial for securing a higher loan amount.

Affordability Assessment: Lenders conduct thorough affordability assessments to ensure borrowers can comfortably repay the loan. They consider factors such as income, existing financial commitments, monthly expenses, and debt-to-income ratios. Higher disposable income and lower debt burdens can enhance your borrowing capacity.

Loan-to-Value (LTV) Ratio: The loan-to-value ratio is a crucial factor in determining the maximum amount you can borrow with a 100% mortgage. It represents the percentage of the property's value that lenders are willing to finance. While a 100% mortgage covers the entire property value, lenders may exercise caution and limit the LTV ratio to mitigate risks.

Interest Rates: Interest rates play a significant role in calculating borrowing capacity. Higher interest rates result in larger monthly repayments, which may impact the loan amount lenders are willing to provide. Interest rates are influenced by factors such as creditworthiness, market conditions, and the loan term.

Additional Costs: It's important to consider the additional costs associated with purchasing a property, including legal fees, surveys, stamp duty, and insurance. These expenses are typically not covered by the mortgage and should be factored into your overall budget.


While a 100% mortgage eliminates the need for a down payment, it's important to recognize that several factors determine the amount you can borrow through this arrangement. Lenders consider your creditworthiness, affordability, and loan-to-value ratio when assessing your borrowing capacity. Additionally, it's crucial to evaluate interest rates and associated costs to determine the true affordability of the mortgage. Let's find the right mortgage for you!

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