As some investors step back, first home buyers may find more room to explore their options and negotiate a purchase. Combined with government support, this could create an opening for those ready to buy.

Below, we explain the support available and how our team can help you navigate your first purchase.

Buy with a smaller deposit

The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with as little as a 5% deposit, without paying lenders mortgage insurance (LMI).

There are no income caps, so a higher professional salary does not automatically exclude you. Scheme eligibility and lender approval still apply.

Examples assume eligibility for the 5% Deposit Scheme and exclude stamp duty and other purchase costs.

For a $1 million home, that means a $50,000 deposit instead of $200,000. You would borrow more, so with the same interest rate and loan term, repayments would be higher and you would pay more interest.

In NSW, the scheme’s property price caps are $1.5 million in Sydney and designated regional centres, and $800,000 in other areas. The property’s location, purchase price and lender-assessed value determine whether it qualifies.

Check your stamp-duty savings
Separate NSW assistance may reduce another significant upfront cost:

These benefits can apply with either a 5% or 20% deposit. Previous ownership and occupancy requirements apply.

For example, an eligible buyer purchasing a $1.2 million Sydney home could potentially use the 5% Deposit Scheme but would still need to budget for stamp duty.

Consider whether family equity could help

A family guarantee is another potential pathway. A parent or eligible family member may use equity in their property as security for part of your loan, potentially reducing the deposit required and avoiding LMI, subject to lender approval.

They don’t give you the equity as cash, and you remain responsible for your repayments. However, if you cannot repay the loan, the guarantor may be liable for the guaranteed amount, putting their property at risk. Independent legal and financial advice is important before proceeding.

Pristine can explain the requirements and what would be needed to release the guarantee in future.

Understand your position before making an offer

Compare the repayments as well as the deposit. Allow for legal fees, inspections, settlement costs and a financial buffer. Doctors and other professionals should also consider any profession-specific lending options available to them.

Once your budget is clear, investigate the property and have your solicitor or conveyancer review the contract before committing.

Experts in your corner

At Pristine Finance, we take special care of first home buyers. We were once in your shoes and understand how much this purchase matters, and the value of having experienced people in your corner.

Our support goes beyond arranging your home loan. We help you understand your borrowing position, check available schemes and compare lending options. We can also help you analyse properties you’re considering, prepare an offer and negotiate with the selling agent.

Considering your first purchase? Contact our team to discuss your options before making an offer.

General information as at 7 October 2026. Eligibility, property limits and lender approval apply. Examples exclude purchase costs. Obtain advice relevant to your circumstances before committing.