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First home buyers

Your first home, with the schemes in the right order.

Updated

Since October 2025 a first home buyer in Melbourne can borrow with a 5% deposit and no lenders mortgage insurance under the Australian Government 5% Deposit Scheme, with no income cap and a $950,000 price cap. Add the state duty exemption, the $10,000 grant for a new home and the federal Help to Buy shared equity scheme, and the question is no longer whether help exists. It is which pieces you qualify for, which lender runs them, and what the combination does to your borrowing. We assess that before you look at a single listing.

Start a first home review How we assess

Short assessment to begin. No documents at this stage, no credit check. Scheme eligibility is set by government and confirmed by the lender; nothing here is an approval or a place in a scheme.

The deposit, the purchase costs beside it, and where support may apply A single grey bar showing the deposit, which is what most buyers count. Below it, what the purchase actually needs: the deposit beside transfer duty, conveyancing, inspections and lender fees. Below that, three routes: a guarantor, government support if you qualify, or neither. WHAT MOST BUYERS COUNT The deposit, and nothing beside it the costs beside it are the usual surprise WHAT THE PURCHASE ACTUALLY NEEDS Deposit Duty, legals and fees both come out of the same savings, on the same day Transfer dutyConveyancingInspectionsLender fees WHERE SUPPORT MAY APPLY A guarantorfamily security, if offeredScheme supportif you qualify for itNeitherand that is a fine answer eligibility for any scheme is checked before it is relied on The deposit, the purchase costs beside it, and where support may apply WHAT MOST BUYERS COUNT The deposit, on its own WHAT IS ACTUALLY NEEDED Deposit Duty and fees Transfer dutyConveyancingInspectionsLender fees WHERE SUPPORT MAY APPLY Guarantorif offeredSupportif you qualifyNeitheralso fine scheme eligibility is checked before it is relied on
The deposit, the costs beside it, and where support may apply
2010Established
$1B+Lending settled
50+Lenders through our lender and aggregator network
PremiumBroker status with leading banks
5.0From 196 Google reviews

At a glance

5% Deposit Scheme
From 1 October 2025: 5% deposit, no lenders mortgage insurance, no income cap, unlimited places; price cap $950,000 in Melbourne and regional centres, $650,000 elsewhere in Victoria
Victorian duty
No transfer duty on a first home to $600,000; a reducing concession to $750,000
First Home Owner Grant
$10,000 for a new home valued to $750,000, never previously occupied or sold as a residence
Help to Buy
Federal shared equity: 2% deposit, government share up to 30% (existing) or 40% (new); income caps $103,000 single, $165,000 joint; open in Victoria
Credit assistance
Dayan Kasturiratna, Australian Credit Representative 394747, under Australian Finance Group Ltd, ACL 389087
What we arrange

Five ways a first home gets funded, and how they combine.

Most first home buyers qualify for more than one measure and can use fewer than they think. The scheme, the grant, the duty concession, a family guarantee and your own savings each have rules, and the rules interact.

A young couple reviewing documents with a broker at a kitchen table01

The 5% Deposit Scheme

The Commonwealth guarantees up to 15% of the value, so an eligible buyer with 5% avoids lenders mortgage insurance. No income cap and no place limit since 1 October 2025. Citizen or permanent resident, first home, owner-occupied, under the local price cap, through a participating lender, which assesses the loan on its own policy.

Begin A newly built townhouse in a Melbourne growth suburb02

Help to Buy shared equity

The Commonwealth takes up to 30% of an existing home or 40% of a new one as equity, reducing the loan. A 2% deposit is enough; income caps of $103,000 (one buyer) and $165,000 (two) and the same Victorian price caps apply. The share is repaid on sale or bought out over time. Places are limited; we confirm availability before relying on it.

Begin House and land estate street with new homes under construction03

Victorian duty exemption and the grant

No transfer duty on a first home to $600,000 and a reducing concession to $750,000, new or established, with twelve months occupancy. The $10,000 First Home Owner Grant applies to a new home valued to $750,000. Both are applied through an approved lender at settlement or claimed from the SRO afterwards. The regional grant and the Victorian Homebuyer Fund have closed.

Begin Parents and adult child on the verandah of a suburban family home04

Family guarantee

A parent offers their property as security for the part of the loan above 80%, so the buyer avoids lenders mortgage insurance without a scheme. The guarantee is limited, released at 20% equity, and a real liability for the guarantor, who takes their own legal advice. It works above the scheme price caps, which is where Melbourne buyers most often need it.

Begin A person at a desk reviewing a savings plan on a laptop05

Savings, super and the standard path

Genuine savings of at least 5% held for three months open most lenders. The First Home Super Saver Scheme releases voluntary super contributions of up to $15,000 a year and $50,000 in total, plus earnings. And a standard loan with lenders mortgage insurance is sometimes the right answer when a scheme lender's policy or price cap does not fit the home you want.

Begin

Scheme rules, caps and grant amounts are set by the Commonwealth and Victorian governments and change; the figures on this page were verified on 7 September 2026. Eligibility is confirmed by the lender and the scheme administrator, not by us, and nothing on this page is an approval.

How we assess

Eligibility, capacity and the property.

Three questions decide a first home purchase: which measures you are eligible for, what a lender will lend on your income once the measures are applied, and whether the property you want fits the caps and the lender's policy.

Front elevation of a renovated single-fronted cottage in an inner Melbourne suburb

Eligibility: what is checked

  1. Citizenship or permanent residency of every buyer, and age
  2. Prior property ownership in Australia, including part shares and inherited property, against each scheme's look-back rule
  3. Income against the Help to Buy caps, where that scheme is in play; the 5% Deposit Scheme has none
  4. The property against the price cap for its location and the scheme's property type rules
  5. Occupancy: whether you will live in the home for the required period, starting within the required time
  6. Whether the lender you need participates in the scheme you need
A first home buyer couple inspecting a unit with an agent

Capacity: what the lender assesses

  1. Net income after tax, including how the lender counts casual, contract, bonus and second-job income
  2. Living expenses against the lender's benchmark for your household
  3. Existing debts, HECS or HELP repayments, and credit card limits whether used or not
  4. Serviceability at the assessment rate, at least 3 percentage points above the actual rate
  5. Genuine savings history and the source of the deposit, including gifts
  6. Credit history, rental history and employment tenure against the lender's policy
Illustrative scenarios

Three first home positions, assessed the way a lender would.

Hypothetical positions with rounded figures, built to show how the measures combine. None is a client result, approval, quote or promise.

Illustrative scenario

Established unit under the duty threshold, 5% deposit

Buyers
Couple, both salaried
Purchase price
~$590,000
Savings
~$35,000
Deposit at 5%
~$29,500
Left from those savings before buying costs
~$5,500
Scheme
5% Deposit Scheme, subject to the price cap for the location
LMI
Not payable
Transfer duty
Nil, under $600,000
Registration fees and costs
Conveyancing, inspections and registration still to be met, and a cash buffer beyond them
Outcome considered
Purchase with the deposit held

The scheme removes lenders mortgage insurance; the state removes the duty under $600,000. The lender still assesses the full loan at its assessment rate. A small deposit can make a purchase worth exploring; it does not establish that the price is affordable, and $5,500 does not go far against conveyancing, inspections, registration and an owners corporation. The work is choosing a participating lender whose policy suits two salaried incomes and a unit of this age.

Illustrative photograph of a two-storey walk-up apartment block in a middle-ring Melbourne suburb Illustrative image Illustrative scenario

Established unit under the duty threshold, 5% deposit

Scheme, duty exemption and a lender that runs both.

Illustrative scenario

New townhouse with Help to Buy and the grant

Buyer
Single, salaried, under the income cap
Purchase price
~$720,000, new
Deposit saved
~$20,000 (about 3%)
Help to Buy share
Up to 40%, new home
Loan required
The balance after deposit and share
First Home Owner Grant
$10,000, new home under $750,000
Transfer duty
Concession applied, between $600,000 and $750,000
Outcome considered
Serviceable loan on one income

The government share is repaid on sale or bought out over time, and places are limited. The grant and the duty concession are applied through the lender at settlement where it is an approved agent. Whether the buyer's income services the remaining loan at the assessment rate is the question the lender answers.

Illustrative photograph of a row of new townhouses with small front gardens Illustrative image Illustrative scenario

New townhouse with Help to Buy and the grant

A smaller loan, a government share, a grant at settlement.

Illustrative scenario

A parent guarantee instead of lenders mortgage insurance

Buyers
Couple, both salaried
Purchase price
~$780,000, established house
Deposit saved
~10%
Guarantee
Parents' home secures a limited amount, about 15% of the price
LMI
Not payable, the loan is under 80% against both securities
Transfer duty
Full duty, over the $750,000 concession limit
Guarantee release
Reviewed when the loan falls to 80% of the home on its own; release needs the lender's agreement and a valuation
Outcome considered
Purchase now, guarantee released later

The guarantee is limited to a stated amount, and the parents are taking a real risk for that amount: a guarantor can lose money if the borrower does not pay. Lenders require them to get independent advice before they sign. Release is a review at a point, not a date, and it depends on the lender and the valuation at the time. It is worth comparing eligible government support, or paying lenders mortgage insurance, before putting a parent’s home behind the loan.

Illustrative photograph of an established weatherboard house with a front verandah in a Melbourne suburb Illustrative image Illustrative scenario

A parent guarantee instead of lenders mortgage insurance

Limited guarantee, no LMI, released later.

Illustrative scenarios. Figures are hypothetical and rounded and reflect scheme rules verified on 7 September 2026. These are not client results, approvals, quotes or promises. Scheme eligibility is confirmed by the lender and the scheme administrator. Finance remains subject to lender assessment, valuation, documentation and applicable law.

How it works

Four steps, and nothing lodged until you agree.

01

Tell us where you are

A short assessment: what you have saved, how you earn, what you are looking at and when. No documents, no credit check.

02

We map the measures

With your agreement, we check which schemes, grants and concessions you are eligible for, which lenders run them, and what each does to your deposit and your borrowing. In writing.

03

We take it to the right lender

A participating lender chosen for your income, the property type and the scheme, across our lender and aggregator network. Costs and conditions set out before anything is lodged.

04

You decide, then we lodge

Pre-approval with the right lender, the scheme place reserved where one is needed, and the grant and duty concession lodged for settlement.

In most cases we are paid commission by the lender on settlement, and our Credit Guide sets out how that works and what you are entitled to know. Where a fee would apply to any part of the work, we tell you in writing first.

What we will ask for at step two

  • Identification for every buyer, and evidence of citizenship or residency
  • Payslips, employment contract and the last two years of tax returns or notices of assessment
  • Savings statements showing the deposit and its history, and any gift letter
  • Existing loan, card and HECS or HELP statements
  • The contract of sale or the property details once you have them
  • For a family guarantee: the guarantor's property and loan details

What we will not do

  • Treat a scheme place as an approval, or promise one before the scheme confirms it
  • Quote a capacity figure as if it were an approval
  • Recommend a scheme lender whose policy does not suit your income or the property
  • Put a family guarantee in place where the buyer qualifies for the scheme without one
Who you will deal with

One person, from the first conversation.

First home files sit with Dayan Kasturiratna, who provides the credit assistance on every file.

Dayan Kasturiratna, Founder and Director of Opulent Finance, seated in a Melbourne boardroom

Dayan Kasturiratna

FIPA FFA CTA

Founder and Director. Chartered tax adviser and finance specialist. Australian Credit Representative 394747, under Australian Finance Group Ltd, ACL 389087.

Established Opulent Finance in 2010. A first home is where most people meet lending policy for the first time, and where the schemes reward a buyer who has them in the right order. The work is getting the order right before the property is found, so the offer can be made with confidence.

Mobile0423 272 600 Office1300 001 551
dayan@opulentfinance.com.au
WINNER · 2026Best Solo OperatorAFG Broker AwardsWINNER · 2025 · VIC/TASBest Finance Brokerage (Office)The Adviser Better Business AwardsOpulent Finance
Ian Webbe, Mortgage Development Manager at Opulent Finance, seated at a meeting table in a Melbourne office

Ian Webbe

Mortgage Development Manager. First point of contact for enquiries above $10 million.

Ian takes every $10m+ enquiry from the first conversation through to settlement. Ian manages the relationship; the credit assistance on the file is provided by Dayan.

Mobile0415 989 012 Office1300 001 551
ian@opulentfinance.com.au
Premium Broker statusWith leading banks
Established 2010Melbourne finance brokers
Burwood, Victoria22 Harker Street

Credit assistance is provided by Dayan Kasturiratna, Australian Credit Representative 394747, authorised under Australian Finance Group Ltd, Australian Credit Licence 389087.

Google reviews

What clients say about working with us.

5.0196 Google reviews
Dayan and the team were approachable and knowledgeable, and always willing to help.Bich Thuy Nguyen on Google
Both were warm and friendly and always available.Melanie Georgiou on Google
I highly recommend Dayan and Lihini for their honest, professional, and reliable service.Varuni Wickramasinghe on Google

Where these reviews come from, and the rest of what clients say

Questions

Before you start.

Do I need a 20% deposit to buy my first home?

No. Under the Australian Government 5% Deposit Scheme an eligible buyer needs 5% and pays no lenders mortgage insurance, with no income cap since 1 October 2025. Help to Buy needs 2% plus a government equity share, with income caps. A family guarantee replaces the deposit above 80% with a parent's security. Outside those, a loan above 80% with lenders mortgage insurance is available with most lenders, and most want at least 5% in genuine savings.

What are the price caps in Victoria?

For both the 5% Deposit Scheme and Help to Buy, $950,000 in Melbourne and regional centres and $650,000 elsewhere in Victoria, current at September 2026. The Victorian duty exemption applies to $600,000 with a concession to $750,000, and the First Home Owner Grant to a new home valued to $750,000. A home can fit one cap and miss another, which is why the measures are mapped together.

Can I get the First Home Owner Grant on an established home?

No. The Victorian grant of $10,000 is for a new home valued to $750,000 that has not been lived in or sold as a residence before. Established homes can still receive the duty exemption to $600,000 and the concession to $750,000, and can be bought under the 5% Deposit Scheme or Help to Buy.

Does a scheme mean the bank will approve me?

No. The scheme guarantees part of the loan or takes a share of the property; the lender still assesses your income, expenses, debts and credit history at its assessment rate and under its own policy, and can decline. A place in a scheme without a lender who will approve the loan is not a purchase.

Does an enquiry affect my credit score?

No. The assessment and our review involve no credit enquiry. A credit check only occurs if you decide to proceed with an application, and we tell you before it happens.

Should I buy first or get pre-approval first?

Pre-approval first, with the lender that runs the scheme you will use. It sets your ceiling on real numbers, reserves a scheme place where one is needed, and lets you bid or offer with a known limit. A pre-approval is conditional on valuation and unchanged circumstances and usually lasts about three months.

Further reading

Articles for first home buyers.

Longer reads from our archive. Scheme figures in older articles may have been superseded; this page is current.

ArticleFirst home buyer loans in Melbourne: what you need to knowRead ArticleSmart loan strategies for first home buyers in VictoriaRead ArticleFirst home buyers Victoria: deposit myths bustedRead ArticleHome loan deposit: what can count towards itRead ArticleWhat happens after home loan pre-approval?Read
Ready when you are

Tell us what you have saved. We will tell you what it can do.

Short assessment. No documents at this stage, no credit check. Contact at the time and by the method you choose.

Start a first home review How we assess

The guide and the two calculators first home buyers use most.

GuideFirst home buyers guide for VictoriaDeposit, the 5% deposit scheme, grants and stamp duty concessions for Victorian first home buyers.CalculatorBorrowing power calculatorAn indicative range from income, expenses and a rate you enter. Not an approval or scheme eligibility.CalculatorStamp duty calculatorDuty for every state and territory, including first home buyer concessions where they apply.

All calculators