Being able to buy with 5% and no LMI is one of the most powerful first home buyer supports we’ve seen – but it can also magnify mistakes.
Recent policy settings mean more first home buyers can enter the market with as little as a 5% deposit and avoid traditional LMI, instead of needing to grind their way to 15–17%. That’s opened the door for a lot of people who would have been renting for many more years.
The flip side is that the leverage which helps you in the door can work against you if you choose the wrong asset. I’m seeing buyers rush into brand‑new or poorly located stock that doesn’t have the fundamentals for solid long‑term growth. The question isn’t just “Can I buy?” – it’s “Is this the right property, in the right location, at the right time for me?”
Used well, low‑deposit pathways can bring your plans forward and help you build equity sooner. Used poorly, they can lock you into an underperforming property that limits your options for years.
PS: Beyond standard options, I also work with lenders who can consider home or investment purchases from deposits as low as 1%. If you want to see what’s genuinely possible for your situation, reach out for a confidential chat.
