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Buying Your First Home in Victoria? Here’s How a 5% Deposit Could Work for You

Buying Your First Home in Victoria

Taking your first step into the property market is both exciting and overwhelming, especially when you are trying to save for a deposit.

The good news?

If you are a first home buyer in Victoria, you may not need the traditional 20% deposit to get started. You could be eligible to buy your first home with just a 5% deposit and with no Lenders Mortgage Insurance (LMI) in some cases. Read the blog below for insights on buying your first home.

first home buyer loan Victoria - Committed Financial Group

What is a First Home Buyer Loan with 5% Deposit?

A home loan with 5% deposit allows eligible first-time buyers to secure a property with just a fraction of the usual upfront costs. Normally, buyers who put down less than 20% of the purchase price are required to pay LMI, which can add thousands to the loan. But under government-backed schemes, you could avoid LMI altogether.

Key Benefits:
  • Only 5% deposit needed
  • No Lenders Mortgage Insurance (LMI)
  • Access to government support programs
  • Ideal for regional and metropolitan Victoria
  • First Time Home Buyer Assistance in Victoria

First Home Buyer Loan Eligibility Criteria

To qualify for these first home buyer programs, you typically need to:
  • Be an Australian citizen or permanent resident
  • Be at least 18 years old
  • Have not owned a home before
  •   Meet income and property price caps
  • Live in the property as your primary place of residence

First Time Home Buyer Assistance

The government offers a range of grants and concessions for eligible buyers. These are designed to reduce the upfront cost and make entering the market easier.
What’s available?
  1. First Home Owner Grant (FHOG)

$10,000 for new homes in metropolitan areas

$20,000 for new homes in regional Victoria

  1. Stamp Duty Concessions

Pay reduced or zero stamp duty for properties under $600,000

  1. Home Guarantee Scheme (HGS)

A federal program allowing eligible first home buyers to purchase with as little as 5% deposit and no LMI

For the right guidance, speak with a mortgage broker at Committed Financial Group who understands the requirements and can match you with the right loan.

Unlock Savings with Regional VIC Home Loans

Buying in regional Victoria not only increases your chances of being approved for government support, but it also opens up more affordable housing options.

  • Lower property prices
  • Larger FHOG amount ($20,000)
  • Potential lifestyle upgrade, more space, and quieter surroundings
  • Increasing property growth as more people move to the region
Take the First Step with Confidence

“Low Deposit. Big Opportunity.” With a first home buyer loan in Victoria, achieving your dream of homeownership is more possible than ever, even with just a 5% deposit. Whether you are exploring opportunities in the city or tapping into the benefits of regional VIC home loans, there’s a clear path forward. Need help finding the right loan for you? Contact Committed Financial Group today to secure your no-LMI first home loan.

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