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Buy Your First Home With as Little as 5% Deposit

By the Mortgagefy Team · Published 7 April 2026 · Last reviewed 29 April 2026

Grants, stamp duty exemptions and government guarantee schemes may help reduce your upfront costs. We'll talk through what you may be eligible for — free.

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Get Your First Home Plan — Free

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Australian Credit Licence 348324 · Authorised credit representative No. 532656 · MFAA member · No broker fees · Same-day response · See illustrative scenarios

How Much Deposit Do You Really Need?

You May Not Need 20% — Here's Why

Government-backed schemes mean many first home buyers can purchase with far less than they think.

Most Popular

5% Deposit

First Home Guarantee

Government-backed scheme. Buy with 5% deposit and NO LMI. Places are no longer capped (since 1 October 2025). There are no income caps under the 5% Deposit Scheme. Available on new and existing homes.

10% Deposit

Guarantor or Specialist Lender

With a guarantor or specialist lender, 10% is achievable. LMI may apply unless you use the Family Home Guarantee or a guarantor structure where a parent secures the remaining portion.

20% Deposit

Traditional — No LMI

The traditional 20% avoids LMI entirely. If you're close to 20%, it may be worth saving a little longer to avoid a $10,000–$25,000 LMI premium that would otherwise be capitalised into your loan.

Not sure where you sit? Use our upfront costs calculator to find out exactly what you need.

Government Help Available to First Home Buyers

Multiple federal and state programs can stack together — a broker will confirm exactly which apply to your situation.

First Home Owner Grant

Up to $10,000 on new homes (NSW). Applies to new builds and off-the-plan purchases under $600k. State-funded, one-off cash grant paid at settlement.

First Home Guarantee

Buy with 5% deposit, no LMI. Government guarantees 15% of the loan. unlimited places since 1 October 2025. Available on new and existing properties.

Stamp Duty Exemption

NSW: $0 stamp duty up to $800k and a concession up to $1M for first home buyers (homes). VIC: Full exemption under $600k. QLD: Exemption under $500k. In NSW that can save around $30,000 on an $800k home.

Family Home Guarantee

Single parents with a dependent child can buy with just 2% deposit and no LMI through this federal scheme. Available on new and existing homes.

Eligibility varies by state and purchase price. in your situation — at no cost.

Calculate Your Total Upfront Costs

Find out exactly how much cash you need to buy your first home — including stamp duty, LMI, legal fees, and grants.

Your Property Details

$
$

What's included in the estimate?

  • ✓ Stamp duty (with FHB exemptions applied)
  • ✓ LMI estimate (waived if using First Home Guarantee)
  • ✓ Legal / conveyancing fees (~$1,800)
  • ✓ Building & pest inspection (~$900)
  • ✓ Miscellaneous (removalist, connections, ~$500)
Live Estimate Updates as you type

Total Cash Required

$62,500

Deposit: 7.7% — LMI may apply

Stamp duty: $0 (FHB exemption)

Full cost breakdown + grant eligibility locked

Your Step-by-Step First Home Journey

From first thought to collecting the keys — here's exactly how the process works with Mortgagefy.

1

Work Out Your Budget

Borrowing power calculation, upfront cost estimate, and ongoing repayment modelling. Know your numbers before you start searching — it saves months of wasted time and protects you from falling in love with a property you can't afford.

2

Get Your Assessment

Get your borrowing power assessed so you can bid at auction and make offers with confidence. We submit to your chosen lender and manage the process. Takes 2–5 business days for many applicants with clean documentation.

3

Find Your Property

With pre-approval confirmed, start searching within your budget. Your broker stays on call for rate queries, purchasing structure advice, and to update your pre-approval if your target price changes.

4

Apply for Grants

We lodge the First Home Owner Grant application and confirm scheme eligibility (First Home Guarantee, stamp duty exemption) before or at the same time as your formal loan application to avoid delays.

5

Settle & Move In

We manage the lender, solicitor, and settlement agent right through to settlement day. All you need to do is collect the keys and start moving in. We're available throughout the entire process.

First Home Buyer Case Studies

Illustrative examples of how we help first home buyers across Sydney.

Important information about these case studies

The following case studies are illustrative examples based on typical borrower scenarios. They do not represent specific individual clients. Actual outcomes depend on individual circumstances, lender assessment, and market conditions at time of application. Mortgagefy (Credit Representative No. 532656) provides credit assistance only and does not guarantee loan approval or specific outcomes.

📋 Illustrative Case Study

First Home Buyer — Penrith, NSW

In this scenario, a first home buyer unaware of available government schemes accessed the First Home Guarantee and stamp duty exemption, saving approximately $28,000 in upfront costs and purchasing with a 5% deposit.

What we did: Identified all eligible schemes, structured loan under First Home Guarantee program.

Illustrative example only. Individual outcomes vary based on loan amount, lender assessment, and personal financial circumstances.

📋 Illustrative Case Study

Islamic Finance — First Home Buyer, Auburn

In this scenario, a first home buyer requiring Sharia-compliant finance was connected with a genuine Ijara/Diminishing Musharakah product — a no-interest structure reviewed by a Shariah supervisory board.

What we did: Connected buyer with a Sharia-compliant finance provider (providers confirm their own compliance), managed full application and settlement process.

Illustrative example only. Individual outcomes vary based on loan amount, lender assessment, and personal financial circumstances.

📋 Illustrative Case Study

Low Deposit Purchase — Western Sydney

In this scenario, a first home buyer who believed they needed a much larger deposit was able to purchase using the First Home Guarantee with a 5% deposit, settling within 8 weeks of first enquiry.

What we did: Assessed full eligibility, matched to First Home Guarantee lender, managed entire process.

Illustrative example only. Individual outcomes vary based on loan amount, lender assessment, and personal financial circumstances.

More choice. A better home loan.

Lender availability and criteria vary, and all applications are subject to lender assessment.

Explore all our lenders

First Home Buyer FAQs

Common questions from first home buyers — answered clearly.

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.
Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.
Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.
If you've been in your new role 6+ months, many lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.
Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.
ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

Ready to Buy Your First Home?

A first home buyer specialist will review your eligibility for grants, schemes, and suitable loan options — free, same-day callback.

Request Received!

A first home buyer specialist will aim to reply the same day to discuss your grants, scheme eligibility, and loan options.

Ask Mortgagefy

First Home Buyer Questions Answered

Common questions from Sydney first home buyers — answered clearly.

Many lenders require a minimum 5% deposit, though you'll pay Lenders Mortgage Insurance (LMI) on anything below 20%. As a first home buyer in NSW, you may qualify for the 5% Deposit Scheme (formerly the First Home Guarantee) — a 5% deposit with no LMI, or 2% for single parents and legal guardians. There are no income caps since 1 October 2025; confirm with a participating lender. Stamp duty exemptions can also reduce how much cash you need upfront. Every situation is different — we'll assess exactly what applies to you. Learn about waived LMI options →
The NSW FHOG is $10,000 for new homes valued up to $600,000 (or up to $750,000 in some cases). To qualify, you must be an Australian citizen or permanent resident, have never owned a property before, and intend to live in the home as your principal place of residence for at least 6 months. Established homes do not qualify for the FHOG, but may still attract stamp duty concessions. We'll confirm your eligibility as part of your free assessment.
Assessment typically takes 2–5 business days once we submit your documents. Full formal approval after a property is found usually takes 5–10 business days depending on the lender. Complex income situations (casual employment, ABN income) can add time. We recommend getting your assessment before you start inspecting properties so you can bid with confidence. Check your borrowing power →
Yes — many of our clients purchase solo. Your borrowing capacity on a single income will be lower than a couple's combined income, but it's very achievable, especially in growth suburbs across Western Sydney and the Campbelltown corridor. Government schemes like the Family Home Guarantee (for eligible single parents) can help significantly. We'll look at your specific income, debts, and savings to show you exactly what price range you can target.
It depends on your visa type. Permanent residents can generally access the same loans and grants as citizens. Temporary visa holders (e.g., 482, 457, student visas) face more restrictions — government grants are not available, and some lenders may require a larger deposit or charge a foreign buyer surcharge. That said, specialist lenders do cater to certain temporary residents. We'll match you with the right lender for your visa situation. See our specialist lending options →
Fixed rates offer certainty — you know exactly what your repayments will be. Variable rates tend to be lower but can move with the market. Many first home buyers opt for a split loan: fixing a portion for stability while keeping some variable to allow extra repayments without break costs. The best choice depends on your budget flexibility, how long you plan to stay in the home, and where interest rates are heading. We'll walk you through current rate comparisons across our lender panel.

Have a question not listed here?

Ask Mortgagefy Directly

Further Reading — First Home Buyer Guides

5% Deposit in Lakemba
New Builds in Marsden Park
Home Loans Near Lakemba Station
Mortgage Broker in Campbelltown
Buying Near Blacktown Station
Revesby First Home Buyers
Lenders Mortgage Insurance Explained
How Rail Access Affects Sydney Property Prices in 2026
Which lines add most value & the T8 undervalued corridor
Buying Near the Western Sydney Aerotropolis: 2026 Guide
FHB strategy for St Marys, Penrith & Orchard Hills
Best Suburbs in Western Sydney for First Home Buyers 2026
Top 10 ranked by affordability, transport & lifestyle

Building a home? Construction loan guides

Construction loans Sydney First home buyer construction loan NSW House and land package loan Owner-builder first home buyer NSW Guarantor construction loan

Further reading

Help to Buy scheme guide Home loan pre-approval

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