In October 2025, the maths changed for first-home buyers. A property worth $700,000 used to require $140,000 saved before you could even have a sensible conversation with a lender. Today, the same property may require $35,000. For most buyers, that’s not a marginal difference — it’s 6 to 8 years of their life.
The 10-year savings timeline was never inevitable. It was a product of a system that’s now been changed. Most first home buyers we speak to don’t yet realise how close they actually are.
The 5% government scheme – worth understanding in detail
The expanded scheme lets eligible first home buyers purchase with 5% down and zero Lenders Mortgage Insurance. The government guarantees the remaining 15% to the lender — meaning you don’t pay LMI and the bank is covered.
What’s genuinely new in 2025–26:
- No income caps — higher earners now qualify, which wasn’t the case before
- Unlimited places — the annual cap that locked many buyers out has been removed
- Higher property price limits: Sydney $1.5M, Melbourne $950K, Brisbane $1M
- Applies to both new builds and established homes
The scheme doesn’t mean cheaper borrowing. It means you can start building equity years earlier, rather than watching property prices move while you save.
The 20% route — still the right call for some
Saving a full 20% means no LMI, the widest lender choice, and typically more suitable interest rates. Repayments are lower because you’re borrowing less. There are no scheme eligibility requirements to navigate.
The honest trade-off: it takes about 10 years, on average, to reach 20% in a major city. Prices tend to move in that window. Whether saving longer protects you or costs you depends entirely on the market you’re buying in.
Where your deposit can come from
Lenders accept more sources than most buyers realise:
- Regular savings held for 3+ months (the most straightforward)
- Term deposits, shares, and managed funds
- Cash gifts from parents — usually need 3 months ‘seasoning’ in your account
- Family equity guarantee — parents use home equity as security, no cash changes hands
- First Home Super Saver Scheme — up to $50,000 per person ($100,000 for couples) from voluntary super contributions
- Tax refunds, work bonuses, asset sales, inheritance
Grants and stamp duty savings – often overlooked
First Home Owner Grants of $10,000–$20,000 are available in most states for new builds. Stamp duty concessions can save $10,000–$30,000, depending on the state and property value. In some states, first home buyers under certain price thresholds pay no stamp duty at all. These amounts effectively become part of your deposit.
The right deposit amount isn’t the biggest one. It’s the one that gets you into the right property, at the right time, with repayments that work. That calculation is different for everyone — and it’s worth doing properly before you decide how long to wait.
This is general information only. Speak with a licensed mortgage broker for advice tailored to your circumstances. Credit criteria, fees and charges apply. All loans are subject to lender approval.
Sources: Housing Australia, First Home Guarantee Scheme 2025–26; State Revenue Offices (FHOG and stamp duty by state); ATO, First Home Super Saver Scheme; MFAA Industry Intelligence Service Report 2025.
