First Home Buyers

Buy your first home with a 5 percent deposit and no LMI

Skip Lenders Mortgage Insurance entirely under the expanded First Home Guarantee. No income caps, no place limits. Stryve compares participating lenders to find your best rate.

Stryve Finance broker explaining 5 percent deposit home loan options to first home buyer

We compare your rates with 50+ lenders

How a 5 percent deposit home loan works

Under the First Home Guarantee, the government guarantees the gap between your 5% deposit and the 20% lenders normally require. Your lender treats the loan as if you put down 20%, which means no LMI. That saving alone is worth about $18,500 on a $600,000 home and more than $50,000 at Sydney's $1.5 million cap.

Your repayments are based on 95% of the property value. The guarantee sits in the background between the government and the lender. Single parents can access even lower entry through the Family Home Guarantee with just a 2% deposit.

According to Housing Australia, from October 2025 the scheme removed income caps and place limits permanently. See our full First Home Guarantee breakdown for eligibility details.

Stryve Finance team discussing first home buyer guarantee eligibility

Do you qualify for the guarantee?

Since October 2025, the expanded scheme is open to more buyers than ever. Here are the key eligibility criteria. A 15-minute call with a Stryve broker can confirm where you stand.

Australian citizen or permanent resident

You must be an Australian citizen or permanent resident aged 18 or over at the time of purchase.

No Australian property in 10 years

You must be a first home buyer, or not have owned property in Australia in the last 10 years, including investment property.

Owner-occupier only

The property must be your primary residence. You need to move in within 6 months of settlement and live there while you hold the guarantee.

No income caps since Oct 2025

Income limits have been removed entirely. Your income only matters for loan serviceability, not scheme eligibility.

No annual place limits

The quota system is gone. You can apply any time of year without racing against a cap that runs out early.

Within your state's price cap

Property price caps vary by state and area. Sydney is $1.5M, Melbourne $950K, Brisbane $1M. See Housing Australia for the full list.

What lenders look at

Having 5 percent saved is the starting point, not the finish line. Lenders assess several areas before approval, and each weighs them differently.

You don’t need to meet every criterion perfectly. A broker’s job is matching your profile to the lender whose policy suits it best.

5 percent is the practical minimum under the guarantee. That’s $35,000 on a $700K property instead of $140,000.

Genuine savings

Most lenders want at least 3 months of genuine savings history. Money built up over time is viewed differently from a lump sum that appeared last week, though some lenders are more flexible.

Clean credit history

Lenders check for defaults, late payments, and existing debts. Minor issues narrow your options while serious defaults close doors. Checking your credit file before applying gives you time to address anything.

Serviceability at buffer rates

Lenders test whether you can afford repayments at roughly 3% above the current rate. That buffer can reduce borrowing capacity significantly, which is why pre-approval matters before you start searching.

Employment and income

PAYG borrowers need recent payslips and tax documents. Self-employed borrowers face more scrutiny, with most lenders wanting 2 years of returns, though some accept 1 year.

Eligible property type

The property must be residential and owner-occupied. Houses, townhouses, apartments, and house-and-land packages qualify. Investment properties do not.

Not sure where you stand?

A 15-minute call clarifies your deposit position, borrowing capacity, and which lenders fit. No obligation, no pressure.

Book a strategy call

Not all lenders participate, and rates vary

Which lender you apply with affects your rate, approval, and repayments for years. Stryve compares participating lenders to match your first home buyer loan options with the right policy and pricing.

Rates vary between lenders

Two participating lenders can charge rates 0.5% apart on the same guarantee. On a large loan, that gap costs thousands per year.

Approval criteria differ widely

A lender might decline a self-employed borrower that another would approve. Apartment and income policies also vary by participant.

Your income assessment changes

How a lender calculates your borrowing capacity depends on their own policy. The same income can qualify for different amounts at different lenders.

Stryve matches you to the right fit

Instead of applying to one lender and hoping, Stryve compares participants to find the strongest match for your situation.

Commission transparency

Stryve publishes what we earn from every lender. You can see exactly how we’re paid before choosing who to apply with.

Alternative pathways exist

Other options include the Help to Buy scheme with 2% deposit and lender products that accept deposits below 10%.

What our customers
say about us

Don't just take our word for it. See what hundreds of satisfied clients across Sydney say about their experience with Stryve Finance.

“We had a great experience with Dylan and the team. Very professional and they took care of everything. We will definitely go through Stryve in the future.”

Carrissa Huisman

Google review, 27 Oct 2026

“Best in the business! Dylan and the team made getting my home loan simple and stress-free. They were attentive, responsive, and always kept me in the loop. Highly recommend!”

Zeki Ismen

Google review, 22 Oct 2026

“The team is awesome. Douglas and Dylan, are very thorough and are generous with their time to explore the best product that meets my needs and when they cover all the details, they follow through to the last details ensure the transaction is complete. They will also check after the issue is settled to see if any more support is needed. Simply A service. Best wishes and am sure where to go fir my next mortgage or financial advice.”

Emil

Google review, 13 Oct 2026

“Dylan and his staff have been fantastic, they have made the process very easy and stress free. They walk through everything with you from start to finish and guide you to the best options. Thank you guys much appreciated”

Paul Coleiro

Google review, 22 Sept 2026

“Dylan and the Stryve Team have been so amazing during our search for a first home. Dylan was so communicative, patient and knowledgable and kept us updated throughout the whole process. I can’t recommend them enough!”

Michael O'Malley

Google review, 30 Aug 2026

“My partner & I have had a fantastic experience with Stryve Finance. Dylan and Douglas were incredibly helpful, responsive and supportive throughout the entire process. We’re very grateful for their help and would highly recommend Stryve to anyone looking for a reliable and knowledgeable mortgage broker.”

Tanvi Mara

Google review, 19 Aug 2026

“Dylan and the team at Stryve are exceptional. He made the process so easy to understand and helped secure the loan I was after. A special mention to how efficient the team are and can move things really quickly when needed. Can’t thank them enough for everything they’ve done. Strongly recommend if you’re looking for a first class mortgage broker!”

JAMES HARVEY

Google review, 18 Aug 2026

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Frequently asked questions

Yes, but most lenders require at least 5 percent in genuine savings held for 3 or more months. A gift from parents may satisfy some lenders but not others. Stryve matches you with a lender whose policy fits your deposit source.

Since October 2025, there are no income caps on the First Home Guarantee. Your income only matters for serviceability: whether you can afford the repayments at the lender’s assessed rate. If the loan is serviceable, your income level won’t block you.

Yes. Houses, townhouses, apartments, and house-and-land packages are all eligible. Some lenders restrict certain apartment types, like studios under 40 square metres. Lender selection is especially important for apartment purchases.

If you refinance to a different lender, you lose the guarantee. By the time most borrowers refinance, 2 to 4 years later, loan repayments and property growth have usually built enough equity that the guarantee is no longer needed.

Most first home buyer applications take 2 to 4 weeks from assessment to unconditional approval. Self-employed income or off-the-plan purchases can take longer. Stryve handles paperwork and lender communication throughout.

Yes. It was renamed the First Home Guarantee, and since October 2025 it is officially the Australian Government 5% Deposit Scheme. The expansion made it significantly more accessible by removing the income caps and annual place limits that previously locked out many eligible buyers.

You may still be eligible. Overseas property doesn’t count for the scheme. The test is that you’re a first home buyer, or haven’t owned property in Australia in the last 10 years, including as an investment. Lender policies still vary.

Can you buy with a 5 percent deposit?

A personalised assessment matched to your income, deposit, and property goals. No obligation, no pressure. You’ll speak with a broker who specialises in first home buyer applications.

Book a strategy call

Not sure which schemes you can use? Try the First Home Buyer Scheme Finder

Buy your first home with a 5 percent deposit and no LMI

How a 5 percent deposit home loan works