Deposits, grants & schemes
From deposits to government support - your guide to getting ahead.
How much deposit do you really need?
Smaller deposits do mean extra costs like LMI, but they can also help you get into the market sooner. For some buyers, waiting years to reach a 20% deposit means missing out on potential property growth. This is why understanding your options - and the trade-offs between waiting and acting sooner - is key. As your broker, I can model different deposit sizes for you and show how they affect your repayments, timelines, and overall costs.
When it comes to deposits, there’s no one-size-fits-all rule. Most lenders prefer a 20% deposit, as this helps you avoid Lenders Mortgage Insurance (LMI). For example, a $600,000 home would need a $120,000 deposit at 20%. But many buyers start with less - 10% or even 5% - especially with the help of government schemes or guarantor loans.
The First Home Guarantee explained
The First Home Guarantee (FHBG) is a popular federal scheme that allows eligible buyers to purchase with as little as 5% deposit - without paying LMI. Instead, the government guarantees part of your loan to protect the lender. This can save you tens of thousands in LMI costs and bring homeownership within reach much sooner. There is also a 2% option for single parents (Family Home Guarantee).
Not all lenders participate in this scheme, and spots are limited each financial year, so timing and planning are important. As your broker, I’ll not only check your eligibility but also help you access lenders who are supporting the scheme. With the right guidance, you can take advantage of this opportunity to fast-track your first purchase.
The First Home Owners Grant (FHOG)
Every state and territory offers a First Home Owners Grant, but the rules, amounts, and eligibility differ. For example, in Queensland the grant is $30,000 for new homes under $750,000, while in New South Wales it’s $10,000 for new homes up to $600,000, or construction up to $750,000. In Victoria, it’s $10,000 for new homes under $750,000.
Because the FHOG applies only to new or newly built properties, it’s not always suitable for every buyer. However, if you’re flexible about location or open to building, the grant can be a powerful boost to your upfront costs. I can help you understand the criteria in your state and work out whether this option fits your buying strategy.
Stamp Duty concessions
Stamp duty is one of the biggest upfront costs of buying a home - but as a first home buyer, you may be eligible for concessions or exemptions. These vary by state, but they can mean the difference between needing an extra $20,000–$40,000 upfront or paying nothing at all.
Understanding the rules is vital because concessions often have thresholds or conditions around property price and type. As your broker, I’ll calculate the exact amount of stamp duty you’d pay on different property values and confirm whether you qualify for exemptions. This way, you’ll know your true upfront costs before you make an offer.
Superannuation and the First Home Super Saver Scheme (FHSSS)
The FHSSS allows you to save for your deposit through your super fund, taking advantage of tax benefits along the way. You can contribute up to $15,000 per year (and $50,000 total), then withdraw these contributions plus earnings to use toward your first home.
While it can be a smart way to accelerate savings, it’s not the right fit for everyone. Accessing funds involves timing, compliance with ATO rules, and the process can take a few months. I’ll help you weigh the benefits against the practicalities, so you know whether this is a good addition to your deposit strategy.