By Ali Hasani, Founder and Principal Mortgage Broker at Buyvest, MFAA accredited. Last updated July 2026. Scheme rules and lender policies change, so confirm current settings before relying on them.
There is no single route into your first home. There are several, and the right one depends less on what is available than on which situation you are actually in.
This guide is organised around that. Find the description that fits you, and it points you at the pathway worth investigating first.
Start here: If you have 5% saved, look at the 5% Deposit Scheme first, because it has no income caps and no limit on places. If your income is under $103,000 single or $165,000 joint, Help to Buy may suit better, but you cannot use both. If you work in an eligible profession, an LMI waiver may beat both. If family can help, a guarantor loan removes LMI without anyone handing over cash.
Which pathway fits your situation?
Most first home buyers fall into one of six situations, and each has an obvious starting point. Work out which one describes you before comparing schemes in detail.
You have around 5% saved and a steady income
Start with the Australian Government 5% Deposit Scheme. You buy with 5% and pay no Lenders Mortgage Insurance, because Housing Australia guarantees part of the loan instead. There is no income test at any level, no limit on places and no waiting list, and the NSW price cap is $1,500,000 for Sydney and $800,000 elsewhere in the state.
Two things people get wrong. It is not restricted to first home buyers, the test is that you have not owned property or land in Australia in the last 10 years. And meeting the scheme rules is not the same as a lender approving you, because each participating lender applies its own credit policy on top.
Your income is modest and repayments worry you more than ownership
Help to Buy is the one to look at. You enter with 2%, the government takes an equity share of up to 40% on a new home or 30% on an existing one, and your loan is far smaller as a result. No LMI, no rent on the government's share, and much lower repayments.
The trade is that the government owns part of your home and shares in the growth. Income limits are $103,000 for a single applicant and $165,000 for joint applicants and single parents, Australian citizens only, and there are 10,000 places a year with a small lender panel.
You cannot use both federal schemes. Help to Buy and the 5% Deposit Scheme are alternatives, not additions, and you cannot be receiving other government shared equity or guarantee assistance either. The NSW stamp duty exemption and the First Home Owner Grant sit on top of whichever one you choose.
You work in an eligible profession
Check a professional LMI waiver before anything else, because it may beat the schemes outright. Select lenders waive LMI entirely for eligible occupations up to 90% of the property value, and up to 95% in some cases, with no income caps, no price caps and no scheme conditions attached.
The list now spans medical and health practitioners, veterinarians, lawyers, accountants, banking and finance employees, technology sector staff, engineers and senior federal government employees, with allied health well represented. We have dedicated pages for doctors, dentists, lawyers, accountants, actuaries, auditors, bankers, pharmacists, veterinarians, optometrists, physiotherapists, chiropractors, osteopaths, podiatrists, psychologists and sonographers, plus a no LMI home loan overview.
Eligibility differs sharply between lenders, so approaching the wrong one first can mean paying a premium you never needed to.
Family can help, but not with cash
A guarantor loan uses equity in a family member's property as additional security. The lender is secured across two properties, your effective LVR drops below 80%, and no LMI applies. Nobody hands over money, and the guarantee can usually be released once your own LVR falls far enough. Both parties should take independent legal and financial advice first, because the guarantor carries real risk.
You are still building the deposit
The First Home Super Saver scheme lets you save inside super at a lower tax rate, up to $15,000 a year and $50,000 lifetime, and a release generally counts as genuine savings with lenders. If you are renting, ask about rental history too, because most lenders now accept a consistent payment record as an alternative to the savings test. Our deposit options guide covers every route.
You already own property, or have owned before
If you own now, existing equity may fund the next deposit. Usable equity is the property value times 0.80 minus your loan balance, and our home equity calculator works it out. If you owned in the past but not in the last decade, the 5% Deposit Scheme may still be open to you even though the First Home Owner Grant is not.
Not sure which one describes you?
We work through the scenarios against your actual numbers and tell you which pathway is worth pursuing. 35+ lenders compared at $0 cost to you.
What can you claim on top?
The NSW benefits are separate from the federal schemes and stack with whichever one you use. Neither has an income test.
The NSW stamp duty exemption removes duty entirely on a home up to $800,000, new or established, with a reduced rate to $1,000,000. On an $800,000 purchase that is more than $30,000. You need to move in within 12 months and live there for 12 continuous months.
The First Home Owner Grant pays $10,000 on a new home under $600,000, or $750,000 for land plus a building contract. There is no sliding scale, so a dollar over the cap means nothing at all. It is also stricter than the 5% Deposit Scheme on ownership history, requiring that you have never owned residential property in Australia.
What if none of the schemes apply?
You buy with a deposit under 20% and pay LMI, or you keep saving. Both are legitimate, and which wins depends on how far you are from 20% and what the market does while you get there.
LMI on a $600,000 loan runs around $15,000 to $24,000 at 90% LVR and $23,000 to $37,000 at 95%, varying by lender and borrower. It buys you entry now rather than in a few years. Our LMI guide covers whether that trade makes sense, and the benefits and risks guide covers what a small deposit means once you own.
What does it cost beyond the deposit?
Allow 3% to 5% of the purchase price. For an eligible first home buyer under $800,000, stamp duty is $0, which removes the largest line.
The main items are conveyancing and legal work at roughly $1,500 to $3,000, building and pest inspections at $400 to $800, a strata report where applicable, lender and government fees at settlement, insurance, and moving. Ongoing, budget for council rates, water, insurance, strata levies if you buy into a scheme, and maintenance. Our budgeting guide works through the full picture.
What is the first step?
Work out which scenario you are in, then get pre-approved, because scheme eligibility and borrowing capacity together decide your real price range.
Pre-approval takes 3 to 10 days and holds for around 3 months. Make sure it is fully assessed rather than an automated estimate, particularly if you might bid at auction. From there, our pre-approval to settlement guide covers the rest, and first home buyer tips covers the fundamentals.
Frequently asked questions
Can I use more than one government scheme?
Partly. You must choose between the 5% Deposit Scheme and Help to Buy, because they are mutually exclusive. Whichever you pick can be combined with the NSW stamp duty exemption, the First Home Owner Grant if the property qualifies, and the First Home Super Saver scheme.
Is there an income cap on the 5% Deposit Scheme?
No. There is no income test at any level, for singles or couples, and no limit on places or waiting list. Help to Buy does have income limits, at $103,000 for a single applicant and $165,000 for joint applicants and single parents, which is one of the main differences between them.
Do I have to be a first home buyer?
Not for the 5% Deposit Scheme. The test is that you are a first home buyer, or you have not owned property or land in Australia in the last 10 years. The First Home Owner Grant is stricter and requires that you have never owned residential property in Australia.
How much deposit do I need?
It depends on the pathway. Help to Buy starts at 2%, as does the single parent stream of the 5% Deposit Scheme. The main 5% Deposit Scheme needs 5%. Without a scheme, expect 10% to 15% with LMI, or 20% to avoid it. A guarantor loan can reduce what you need further.
Can I get an LMI waiver for my job?
Possibly. Select lenders waive LMI for eligible professions up to 90% of the property value, and 95% in some cases, with no income or price caps. The list spans medical and allied health, veterinarians, lawyers, accountants, banking and finance, technology, engineering and senior government roles. Eligibility varies sharply by lender, so see our no LMI home loan page.
How long does buying take?
From serious searching to keys, allow 3 to 6 months. Pre-approval takes 3 to 10 days, the property search runs 1 to 3 months, offer to exchange takes 1 to 3 weeks, and the standard NSW settlement period is 42 days. Saving your deposit sits outside that timeline.
What costs should I budget beyond the deposit?
Allow 3% to 5% of the purchase price. That covers conveyancing at roughly $1,500 to $3,000, building and pest inspections at $400 to $800, a strata report if applicable, lender and government fees, insurance and moving. Stamp duty is $0 for an eligible first home buyer under $800,000, which removes the largest single item.
Should I use a guarantor loan?
It suits buyers with steady income but limited savings, where a family member has enough equity and is willing. It removes LMI without anyone handing over cash. Both parties should take independent legal and financial advice first, because the guarantor is genuinely exposed if the loan is not repaid.
Next steps
Model your position with our property deposit calculator, mortgage repayment calculator and home equity calculator. Then read the guide for whichever pathway fits, and the choosing the right finance guide for loan structure once the pathway is settled.
Learn more about our team, or see our service areas across 220+ Sydney suburbs.
Find your pathway
We check every scheme, waiver and structure you qualify for, then compare 35+ lenders. $0 cost to you.
Email: hello@buyvest.com.au
