A lot of people want to buy property, whether that’s to live in themselves or as part of an investment portfolio, but something is standing in their way – their ability to obtain a mortgage. Whether this is due to a poor credit score, lack of down payment, or something else, the fact remains that mortgages are becoming harder to get and that means peoples’ dreams of owning property could be in peril. 

However, it is possible to buy a property without a mortgage in some situations. This is not something that will be open to everyone, but for some, it means getting their foot on the property ladder or boosting their investment portfolio when they would otherwise not have been able to. With that in mind, read on to find out how to buy a property without a mortgage, in case these ideas apply to you. 


If you already own a property and there is a decent amount of equity in it (perhaps you’ve almost or even entirely paid off your mortgage, for example), then it could be worthwhile considering downsizing. If you sell the property that you own and then use the funds to buy another property outright, you won’t have a mortgage to think about anymore. 

Downsizing is the ideal solution here because it means you’ll be buying a less expensive house than you’re selling. Therefore, not only will you not need a mortgage, but you’ll also have money left over to enjoy in any way you want to. Perhaps you’ll invest it in a second property to rent out for a passive income, maybe you’ll go traveling, or it could be used to fund your retirement dreams. 

Buy at Auction 

Sometimes, properties will go to auction to be sold, rather than entering the general real estate market. This could be down to several reasons and often happens when a property has been foreclosed on, when the lenders want their money back as soon as possible, and an auction is the quickest way. 

The great thing about an auction is that the properties will often sell for less than market value. Again, this is due to the lenders wanting their money, or any money they can get, even if they are making a loss, as quickly as possible. Therefore, it could be that, if you are careful with your bidding, you can buy a property with your savings or use fix and flip loans. If you opt for the latter, you can buy the property, fix it up, and then sell it for a profit. At that point, you can pay back the loan and buy another property with the money left over – ideally without a mortgage, although this will depend on the property you choose. 


Saving enough money to buy a house is something we briefly mentioned above in terms of how to pay for an auction property, but it could be the solution you need to buy any property. It depends on how long you’re willing to save for and how much you can save. It might be that a few hundred dollars per month are not going to help you, and instead, you can use that as a down payment and get a mortgage. However, if you’re in a position where you can save thousands of dollars per month, you could stand a chance at buying a property outright. 

Look at your current situation. Is there anything you could do to improve it that would mean you could save more?