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5% Deposit First Home Buyer


A 5 % Deposit for first-home Buyers is an excellent option to buy your first home. Discover more here & learn all that you need to get started!

Traditionally,  applicants for a home loan need to pay a once-off payment or Lender’s Mortgage Insurance (LMI) to the lender/financial institution if they have less than a 20% deposit when purchasing a house. The amount of LMI varies according to the purchase price of the property and the amount of deposit the applicants have available.


The burden of saving up to 20% house deposit is one of the hurdles preventing house ownership for many first-time home buyers.  A 20% deposit for a house valued at $500,000 is $100,000.  If the applicants only have a savings of $44578, the Lender’s Mortgage Insurance is approximately $12000.  The LMI can be added to the loan.

In recognizing the difficulties first home buyers face in saving up to a maximum of 20%, the Australian Government introduced the First Home Loan Deposit Scheme (FHLDS)(currently renamed as New Home Guarantee) in 2019.  This scheme allows eligible First Home Buyers to purchase a home with a deposit of as little as 5%.  So in this instance, the first home buyer only needs a deposit of $25,000 + allocation for conveyancing costs and building & pest costs that are added on top.

The applicants do not need to pay for any LMI as the government guarantees the LMI.

Please contact us if you want to learn more about the scheme.

By Lauren Eakins

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