How much deposit do I need to buy a home?

Most first home buyers start with a deposit of between 5% and 20% of the property price. A 20% deposit helps you avoid Lenders Mortgage Insurance (LMI), but many buyers can get started with a lower deposit, especially with government support schemes.

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What government schemes can help me buy my first home?

There are several Australian Government programs are designed to help first home buyers. These include both state-based grants and national guarantee schemes.

Australian Government 5% Deposit Scheme

The Australian Government 5% Deposit Scheme allows eligible buyers to purchase a home with as little as a 5% deposit while avoiding Lenders Mortgage Insurance (LMI), thanks to a government guarantee. It applies to owner-occupied homes within set regional price caps, making it easier to get into the market sooner without needing a 20% deposit.

First Home Owner Grant (FHOG)

The FHOG is a state-based grant available to eligible first home buyers who are purchasing or building a new home. Each state sets its own rules, including property value caps and residency requirements. This means the amount you can receive — and your eligibility — will differ depending on where you buy.

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How much can I borrow?

Your borrowing capacity depends on income, expenses, debts, and the number of your dependants. Our borrowing power calculator gives a quick estimate, and our Lending Specialists can assess your full situation for a more accurate picture. Giving you certainty to apply with confidence.

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What upfront costs should I plan for?

Aside from your deposit, you need to budget for:

• Stamp duty (sometimes reduced or waived for first home buyers)
• Building and pest inspections
• Legal and conveyancing fees
• Lender fees

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What do I need to do before I apply for a home loan?

Before you apply for a home loan, it helps to get a few key things organised.

You’ll generally need to gather documents such as:

• Proof of identity with photo ID
• Recent payslips or tax returns to show your income
• Bank statements that show your savings or your deposit

Understanding your credit score and financial situation will also help.

We’ll walk you through exactly what’s required based on your employment and financial situation, so you know you’re ready to apply with confidence.

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What’s the difference between preapproval and full approval?

• Preapproval gives an early indication of how much you can borrow and usually lasts around 90 days.
• Full (unconditional) approval is granted after your finances and the property have been fully assessed.
  We can support you through both stages so you can buy with confidence.

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How can a guarantor help me buy my first home?

A family guarantor can use some of their home equity to support your loan.

This may help you:

• Buy with a smaller deposit
• Avoid LMI

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How can I improve my borrowing power?

You can strengthen your borrowing capacity by:

• Reducing personal debts
• Managing everyday expenses
• Building consistent savings
  Our tools and resources can help you take practical steps to boost your application.

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