Buying your first home with just a 5% deposit sounds like the shortcut many buyers have been waiting for.
But while the scheme can help you enter the market sooner, borrowing 95% of a property's value also comes with risks that every first home buyer needs to understand.
In this episode, Veronica and Meighan are joined by Jack Elliott from Alcove Mortgages to unpack how the 5% Deposit Scheme really works, who can access it following the latest rule changes, and why buying under a government scheme doesn't automatically mean you're making a good property decision.
You'll learn why price caps matter, how Lenders Mortgage Insurance (LMI) fits into the picture, what upfront costs many buyers overlook, and why having cash buffers and a long-term plan can be just as important as saving your deposit.
If you're considering buying with a 5% deposit, this episode will help you understand the opportunities, the risks, and how to decide whether this pathway is the right fit for your situation.
Episode Highlights
01:48 – Why the 5% Deposit Scheme Is So Popular
05:16 – Why Banks Charge Lenders Mortgage Insurance
08:06 – Who Can Use the 5% Deposit Scheme?
12:45 – Which Lenders Offer the 5% Deposit Scheme?
16:28 – How to Protect Yourself With a 95% Home Loan
21:24 – Is the 5% Deposit Scheme Right for You?
24:26 – Join Our First Home Buyer Community
Connect with Jack
Course Details:
- THE First Home Buyer Course is our Step-By-Step, No BS Guide to Every Stage of The Home Buying Process – It’s the next best thing to having your own buyer’s agent. With our expert guidance, you’ll know what to do at every step along the way. Become a home owner faster and easier. Click here: https://homebuyeracademy.com.au/YFHBG
If you enjoyed today’s podcast, don’t forget to subscribe, rate, and share the show! There’s more to come, so we hope to have you along with us on this journey!
