Buying your first home is a major milestone, and despite the ever-changing property market, it’s still achievable in 2025. By understanding deposit requirements, available government support, and how to maximise your borrowing power, you can take a confident step towards homeownership.
How Much Deposit Do You Need?
Traditionally, lenders prefer a 20% deposit to avoid Lenders Mortgage Insurance (LMI). For a $650,000 home, this would mean a $130,000 deposit.
However, many lenders accept deposits as low as 5% ($32,500), though LMI would apply. The good news? There are government schemes to help reduce the upfront costs, so you may not need to save the full 20%.
What Income Do You Need?
Your borrowing power depends on factors like income, existing debts, and living expenses. While requirements vary between lenders, a common guideline is that your mortgage repayments should not exceed 30-40% of your gross monthly income.
For a $650,000 home, with a loan of around $617,500 (assuming a 5% deposit and adding LMI), repayments at a 6% interest rate could be around $3,700 per month. This means you may need an income of $90,000 – $110,000+ per year, depending on your financial commitments.
Speaking to a mortgage broker will give you a personalised assessment based on your actual financial situation.
How Can You Reduce Your Deposit or Stamp Duty?
There are several government grants and schemes available to make buying your first home more affordable:
✅ First Home Owner Grant (FHOG): A $10,000 grant for first-home buyers purchasing or building a new home valued up to $750,000.
✅ First Home Buyer Stamp Duty Exemptions/Discounts: First-home buyers in Victoria purchasing a home under $600,000 pay zero stamp duty. For homes between $600,000 – $750,000, a concessional rate applies.
✅ First Home Guarantee (FHBG): The Australian Government allows eligible first-home buyers to purchase a home with as little as 5% deposit without paying LMI. In Melbourne, the price cap is $800,000.
✅ Guarantor Loans: A family member can act as a guarantor to help you secure a loan with a smaller deposit (or even no deposit at all in some cases).
Why Speaking to a Broker is Essential
Every lender has different rules, rates, and criteria. That’s why using a mortgage broker is key! With access to over 40 lenders, Mynt Financial can find the most suited lender, rate, and loan structure to suit your situation.
Take the Next Step
Your dream of owning a home maybe within reach. Book a free 15-minute chat with Mynt Financial to:
✔ Understand how much you can borrow
✔ See what deposit you need
✔ Explore government grants & schemes you qualify for
Why not take the first step today? Chat with Mynt Financial and get the right advice to make your first home a reality! 🏡💰
