For a lot of first-home buyers, the deposit is the biggest barrier. The good news? You might not need the huge 20% deposit everyone talks about. In today’s market, it is possible to buy with a 5% deposit — and in some cases, even less.
Let’s break down how it works.
1. The Home Guarantee Scheme: Buy with 5% and No LMI
The Australian Government’s Home Guarantee Scheme helps eligible first-home buyers get into the market sooner.
Here’s what it means in simple terms:
- You only need a 5% deposit
- You don’t pay Lenders Mortgage Insurance (LMI)
- The government backs the rest of your deposit (up to 15%)
So instead of waiting years to save a big deposit, the scheme helps you buy sooner — as long as you meet the property price, and residency rules.
If you're in the position to own, don’t have tens of thousands saved, and want to stop renting, this is usually the best pathway.
2. Using the First Home Owner Grant as Part of Your Deposit
A lot of buyers don’t realise this — the First Home Owner Grant (FHOG) can actually be used towards your deposit and upfront costs when you’re buying (or building) a new home.
This instantly reduces how much you need saved.
For example:
If you have $10k saved and you receive the $10k FHOG in Victoria, your usable funds become $20k.
However, not all banks are willing to structure the loan this way. Some lenders want to see the deposit already saved in your account and don’t factor the grant in upfront.
That’s where mortgage brokers can be helpful — they can help you to make the most of what you’re entitled to and get into the market sooner.
3. The MWC $10k Deposit Boost™
At MWC, we go a step further to help first-home buyers get into the market sooner.
Our $10k Deposit Boost™ contributes directly to your deposit position and upfront costs — helping you reach the minimum funds required by lenders. It’s designed to support buyers who are close, but not quite there yet.
When combined with the Home Guarantee Scheme and First Home Owners Grant, many buyers can enter the market with as little as $5k–$15k saved.
This is how so many of our clients have escaped the rent cycle sooner than they ever thought possible.
4. So… Can You Buy with 5% or Less?
In many cases — yes.
With the right structure, you can combine:
- Your savings
- The First Home Owner Grant
- The Home Guarantee Scheme (no LMI)
- The MWC $10k Deposit Boost™
This is how everyday first-home buyers get into the market without needing a huge deposit.
If you’re not sure where you stand, that’s exactly what we help with. Our team can walk you through your options, your eligibility, and what’s possible based on your situation.
Ready to find out where you stand? Let’s start your journey home.
Pre-qualify for a low deposit →
