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First home buyers · deposit, schemes and borrowing power
Your first home, without the guesswork
Most first home buyers are told what they can borrow and never told why. Here is what lenders actually assess, and what your deposit really needs to be.
The deposit question has two answers and they are often confused. Lenders will generally lend up to 95% of a property's value, so the minimum deposit can be as little as 5%. But below 20% you will usually pay lenders mortgage insurance, which protects the lender rather than you, and can run into tens of thousands on a capital city purchase.
Borrowing power is the other half. Lenders assess your income against your commitments, then stress-test the repayment at a rate around three percentage points above the actual rate. That buffer is why the amount you can borrow is often lower than a simple repayment calculation suggests.
What we can help with
- Working out a realistic deposit and purchase price
- Understanding lenders mortgage insurance and when it is avoidable
- Guarantor structures using a family member's equity
- Pre-approval so you can bid or offer with confidence
- Comparing lenders on total cost rather than headline rate
- Checking your eligibility for government schemes
What you get from us
5% deposits exist
But they cost more. We show you the LMI figure before you commit, not after.
Pre-approval is not approval
It is a conditional indication. Understanding the conditions is what stops a deal collapsing.
Guarantors change everything
A family member's equity can remove LMI entirely. It also puts their property at risk.
Schemes change often
Federal and state assistance shifts regularly. We check what applies at the time you enquire.
Eligibility
What lenders look at
- You're 18 or over and an Australian citizen or permanent resident
- You have some regular income — from work, self-employment, superannuation, investments or a pension
- You're borrowing an amount you can service comfortably — most of our panel starts around $10,000
- You can comfortably meet the repayments alongside your existing commitments
Every lender on the panel weighs these differently, so none of it is a fixed cut-off — send the enquiry and we'll tell you honestly what is and isn't available. If money is already tight, the National Debt Helpline offers free, independent financial counselling, with nothing to sell you.
Enquire about first home buyer
Two minutes. No credit check.
The market right now
Where home loan rates sit
RBA cash rate: 4.35% p.a.
Held at the Reserve Bank's 11 August 2026 meeting, effective 12 August. The Board next meets on 29 September 2026. Variable home loan rates generally move with the cash rate, though lenders do not always pass changes on in full.
Advertised variable rates: from about 5.69% p.a.
Around a dozen lenders currently advertise owner-occupier variable rates below 6% p.a. The lowest big-four variable is Westpac's Basic Variable at 5.99% p.a. (comparison rate 6.00% p.a.). Average variable rates on loans already written sit near 5.5% p.a. for owner-occupiers and 5.7% p.a. for investors.
These are market figures, not an offer of credit and not our
panel's pricing. They are published so you can see roughly where the market sits
before you enquire. Sourced from RBA and public lender comparison data, last reviewed
. The rate actually available to you
depends on the lender, the property, your deposit or equity and the lender's assessment
of your circumstances.
Comparison rates are based on a loan of $150,000 over 25 years.
WARNING: a comparison rate is true only for the example given and may
not include all fees and charges. Different terms, fees or loan amounts might result in
a different comparison rate.
Estimate
What would the repayments be?
- Total repayable
- $0
- Total interest
- $0
- Establishment fee
- $195
Estimate only. This is not a quote or an offer of credit. Figures include the $195 establishment fee and assume principal-and-interest repayments at the rate selected. Your actual rate is determined on assessment.
Common questions
Before you enquire
How much deposit do I actually need?
Genuinely 5% is possible with most lenders, plus enough to cover stamp duty and legal costs. At 20% you avoid lenders mortgage insurance. Between those two figures the question is whether paying LMI to buy sooner beats saving longer, and that depends on what property prices do in the meantime — which nobody can promise you.
What is lenders mortgage insurance?
A one-off insurance premium charged when you borrow more than 80% of a property's value. It protects the lender if you default. It does not protect you. It can usually be added to the loan rather than paid upfront, which means you pay interest on it for the life of the loan.
Do government schemes still exist?
Federal and state first home buyer assistance changes regularly, and eligibility caps differ by state and by property price. We check what is current when you enquire rather than quoting a scheme that may have closed.
Can my parents help without giving me money?
Yes, through a guarantor arrangement, where they offer equity in their own property as additional security. It can remove LMI entirely. It also means their property is exposed if you cannot pay, so it is a decision the whole family should make with clear eyes.
Find out what you can actually borrow
Tell us your income, deposit and commitments. We will come back with a realistic figure rather than an optimistic one.
Start an enquiry