A lot of first-home buyers think they need a 20% deposit to get on the property ladder—but that’s not always the case.
The good news? There are actually several ways you can buy with less, and we’re here to help you figure out which one’s right for you.
Here’s a breakdown of how you can get into your first home with less than a 20% deposit...
1. First Home Loan scheme – from just 5% deposit
One of the most popular options is the First Home Loan scheme, which allows eligible buyers to purchase with as little as a 5% deposit. Sounds great, right? It is—but there are a few boxes you’ll need to tick first:
Income Limits:
Couples must earn less than $150,000 in the past 12 months
Single buyers need to earn under $95,000
These limits can be a little tricky if you’ve been on maternity leave or recently returned from overseas, so it’s worth checking your eligibility with us directly.
Employment History:
You’ll need to have been in your current role—or a very similar one—for at least 12 months.Using All Your Funds:
You’ll need to use most of your available funds for the deposit. For example, if you’ve got a $30,000 deposit on a $500,000 property, you can’t hold back a large chunk for renovations. You may be able to keep a small buffer (up to $5,000 in some cases), but anything more is generally a no-go.
2. New Builds (Reserve Bank exempt lending)
Another great option for buyers with less than 20% deposit is purchasing a new build. These types of properties are often considered exempt from the Reserve Bank's standard lending rules, which means banks are able to lend over 80% more freely.
This is still subject to the usual income, debt, and affordability criteria—but it’s a really solid option for buyers who want something brand new and don’t quite have a 20% deposit saved yet.
3. Low Deposit Lending (Standard Bank Allocations)
Even if you don’t qualify for a scheme or aren’t buying a new build, all banks still offer low deposit lending, but it can vary a lot.
Each bank has a limited allocation for borrowers with less than a 20% deposit—this is called “high LVR lending” and it varies by lender, timing, and your personal situation.
So while it’s a bit of a moving target, it’s absolutely worth a conversation with us. We’ll know which banks are lending at any given time and can help you navigate the best options.
Chat with us!
Every bank treats low-deposit lending differently, and it’s our job to know which ones will work best for your situation. Whether you’re nearly ready to buy or just getting started, we’re here to help.
Let’s work together to get you into your first home—even if your deposit isn’t quite at that 20% mark yet, you might be surprised at what is possible!
Book a call with one of us below and we can make a plan 👇