Two federal government programs are giving first home buyers new ways to enter the market with far smaller deposits than before.
5% Deposit Scheme
Eligible buyers can purchase with a 5% deposit and avoid Lenders Mortgage Insurance (LMI). You must live in the property, and price caps apply, ranging from $850,000 in Perth to $600,000 in regional WA. For more information read our blog here.
Help to buy
Launched in December, this shared-equity scheme lets eligible owner-occupiers enter the market with a 2% deposit – with no LMI – with the government taking a stake of up to 40% of a new home or 30% of an existing home. Income caps apply:
Why these schemes matter
For many, the biggest hurdle is the deposit. These programs can make buying possible earlier – even for those priced out of other incentives. But the long-term implications differ, especially when the government owns a share of the home.
As your broker, We can check your eligibility, compare lender participation and explain the trade-offs in plain English.
