From 1 October, the government’s expanded First Home Guarantee Scheme — now known as the Australian Government 5% Deposit Scheme — has made it easier for first-time buyers to get onto the property ladder.
Eligible buyers can now secure a home with as little as a 5% deposit, without paying lenders’ mortgage insurance (LMI). With around 70,000 first-home buyers expected to take advantage of the scheme in its first year, it’s a great time to consider making your move.
But before you dive in, it’s important to understand the scheme and be aware of common mistakes first-home buyers often make.
The scheme allows eligible buyers, regardless of income, to purchase a property with just a 5% deposit. The government acts as guarantor for an additional 15% of the loan, which means you won’t need to pay costly LMI.
Some key updates include:
It’s an exciting opportunity, but there are still pitfalls to watch out for when buying your first home.
A deposit isn’t the only expense you need to plan for. Other upfront costs may include:
On top of that, you’ll need to budget for ongoing expenses such as council rates, utilities, strata fees, insurance and general maintenance.
It’s easy to get swept away by a property’s style or location and forget to check whether it really suits your needs—or your budget.
Try to stick to your must-have criteria and remember: if you miss out on one home, there will always be another opportunity.
Getting pre-approval from a lender gives you a realistic idea of how much you can borrow. It:
Pre-approval is usually valid for 90 days, giving you confidence to act quickly when you find the right place.
While it might seem like a way to save money, skipping an inspection can lead to major unexpected costs down the track. Issues like termites, asbestos, or structural damage can turn your dream home into a financial nightmare.
Always arrange inspections before signing a contract to avoid costly surprises.
Ready to Take the Next Step?
Buying your first home is an exciting milestone, but having the right advice can make all the difference.
As your Mortgage Broker, we can:
Get in touch today to start your journey with confidence.
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