5% Deposit Home Loans – Buy Your First Home Sooner
Entering the property market doesn’t have to mean saving a massive 20% deposit. With low-deposit home loans and federal & state government support schemes, you can purchase your home much faster. At HQ Mortgage (located at 10/857 Doncaster Rd, Doncaster East), we help first home buyers, single parents, and eligible purchasers across Melbourne, Victoria, and nationwide leverage low-deposit options, government guarantees, and state duty concessions to secure competitive rates without waiting years to save.
What is a Low Deposit Home Loan?
A low deposit home loan allows you to borrow up to 95% or 98% of the property’s value (LVR). Traditionally, borrowing more than 80% incurs Lenders Mortgage Insurance (LMI). However, with government guarantee schemes, eligible buyers can secure a loan with a reduced deposit without paying LMI, saving tens of thousands of dollars upfront.
Government Guarantee Deposit Streams:
- First Home Guarantee (5% Deposit): Buy a new or existing home with as little as a 5% deposit without paying LMI. Available to eligible first home buyers and those who haven’t owned property in Australia in the last 10 years.
Key Benefits:
- Buy Years Sooner: Stop paying rent and get into the market while property prices grow.
- Avoid LMI with Government Guarantees: Save up to $15,000–$30,000 in mortgage insurance fees if eligible.
- Keep a Cash Buffer: Retain savings for settlement costs, moving expenses, or family needs.
- Flexible Income Structures: Options available for PAYG employees, self-employed ABN holders, and single parents.
Check Your 2% or 5% Deposit Eligibility
Find out if you qualify for government guarantees and LMI waivers in under 60 seconds.
State-by-State First Home Owner Grants (FHOG) & Stamp Duty Concessions
Last Updated: October 2026
State governments across Australia offer significant financial support to first home buyers, including cash grants for new builds and transfer (stamp) duty exemptions or concessions. Below is the current breakdown by state and territory:
| State / Territory | First Home Owner Grant (FHOG) | Stamp Duty Full Exemption Cap | Stamp Duty Concession Range |
|---|---|---|---|
| Victoria (VIC) | $10,000 (New Homes ≤ $750k) | Up to $600,000 (New & Established) | $600,001 – $750,000 |
| New South Wales (NSW) | $10,000 (New Homes ≤ $600k / $750k land) | Up to $800,000 (New & Established) | $800,000 – $1,000,000 |
| Queensland (QLD) | $30,000 (New Homes ≤ $750k) | Up to $700,000 (Established) / Full Exemption (New) | $700,000 – $800,000 (Established) |
| Western Australia (WA) | $10,000 (New Homes ≤ $800k South / $1M North) | Up to $600,000 (Homes) / $450,000 (Land) | $600,001 – $800,000 |
| South Australia (SA) | $15,000 (New Homes – No Cap) | Full Exemption for New Homes (No Cap) | No established home relief |
| Tasmania (TAS) | $20,000 (New Homes – No Cap) | N/A (Duty exemption ended 30 June 2026) | Standard owner-occupier rates |
| Australian Capital Territory (ACT) | No Grant (Replaced by Home Buyer Scheme) | Full Exemption (No Property Cap / No Income Cap) | Full Exemption applies |
| Northern Territory (NT) | Up to $50,000 (HomeGrown Territory) | Up to $18,601 discount on duty | Concession applies |
How HQ Mortgage Secures Your 5% Deposit Approval
Navigating government guarantee places and lender requirements can be complicated. As your mortgage broker, we help you:
- Reserve Scheme Quota Places: Secure participating lender allocations for the First Home Guarantee or Single Parent Stream.
- Confirm Genuine Savings & Income Thresholds: Ensure your 5% deposit and taxable income meet strict government eligibility caps.
- Maximize State Duty Savings: Combine federal guarantees with state stamp duty exemptions and $10,000–$30,000 cash grants.
- Compare Participating Panel Lenders: Evaluate major banks and non-bank lenders to find competitive interest rates without paying LMI.
- End-to-End Application Management: Handle documentation from pre-approval through to auction day and settlement.
Why Choose HQ Mortgage?
- Personalised Guidance: We assess your specific household setup, income, and deposit to match you with the right scheme stream.
- Access to Major Participating Lenders: Broad lender network access ensures you aren’t restricted to a single bank’s credit policies.
- Local Expertise, Australia-Wide Service: Operating from Doncaster East, Victoria, assisting buyers across Melbourne and nationwide.
What Do You Need to Apply for a 5% Deposit Loan?
To reserve a scheme spot and submit your loan application, you will generally need:
- Proof of Identity: Drivers Licence, Passport, or Medicare Card.
- Income Verification: Your 2 most recent payslips plus your latest ATO Notice of Assessment (NOA) to verify income limits.
- Genuine Savings Evidence: 3 to 6 months of bank statements proving a minimum 5% (or 2%) deposit build-up.
- Self-Employed Applicants: Last 2 years of business tax returns and financial statements (if applicable).
- Single Parent Stream Verification: Evidence of dependent children (e.g., Medicare card listing or Family Tax Benefit statements).
Don’t worry if you haven’t gathered all these documents yet. Our team will guide you through the exact checklist needed for your situation.
Frequently Asked Questions About 5% Deposit Loans
Do I need genuine savings for a 5% deposit home loan?
Yes. Most lenders require at least 5% of the property purchase price to come from genuine savings accumulated over at least 3 months. Gifted funds or first home owner grants may supplement your deposit depending on lender policy.
What property price caps apply in Victoria/Melbourne?
For the First Home Guarantee in capital cities and regional centres like Melbourne and Geelong, the property price cap allows purchases up to $950,000. Other regional Victorian areas have tailored caps. We will confirm your specific suburb limit.
Can I combine the 5% First Home Guarantee with the First Home Owner Grant (FHOG)?
Yes! Eligible buyers purchasing or building a new home can combine federal low-deposit guarantee schemes with state cash grants (such as Victoria’s $10,000 FHOG or QLD’s $30,000 FHOG) and stamp duty concessions.
How does the 2% Single Parent Stream work if I’ve owned property before?
Unlike standard first home buyer programs, the Single Parent Stream (Family Home Guarantee) allows eligible single parents or legal guardians with dependent children to purchase a home with a 2% deposit even if they have previously owned real estate, provided they do not currently own property at settlement.
Do I pay Lenders Mortgage Insurance (LMI) on a 5% deposit loan under the scheme?
No. Under the government scheme, Housing Australia guarantees up to 15% (or 18% for single parents) of the loan value, allowing you to avoid paying thousands of dollars in LMI premiums entirely.
Ready to Buy Your First Home Sooner?
Don’t let a 20% deposit hold you back. Contact HQ Mortgage today to check your government scheme eligibility and secure your pre-approval.
- Phone: 0433 371 658
- Email: finance@hqmortgage.com.au
- Office & Postal Address: 10/857 Doncaster Rd, Doncaster East VIC 3109
- Website: https://hqmortgage.com.au
Official Government State Revenue Links
For complete, official guidelines and eligibility criteria, check your relevant state revenue authority:
Important Credit & Scheme Information Disclaimer:
Information Current as at October 2026. Grant amounts, stamp duty thresholds, exemption caps, and government guarantee scheme rules (including the First Home Guarantee and 2% Single Parent Stream / Family Home Guarantee) are administered by federal and state government authorities (including Housing Australia) and are subject to legislative changes, income thresholds, price caps, allocation quotas, and expiration without notice.
Credit Assessment & Lender Eligibility: All finance applications are subject to individual participating lender assessment, credit criteria, deposit verification, and final approval. General eligibility for a government guarantee scheme does not guarantee loan approval by a participating lender.
HQ Mortgage Service Disclosure: HQ Mortgage operates as a trading name of INRIM Consulting Group. The information provided on this page is general in nature and does not constitute financial, taxation, or credit advice. Before signing contracts, consult directly with an accredited HQ Mortgage broker to verify your eligibility and review tailored product options.