5% Deposit ... happy days!
- pdavey100
- Sep 18, 2025
- 2 min read
5% Deposit to buy a home? … Yes! It really happens!
The big country (ummm … that’s Australia) promises a lot for aspiring Kiwis. Sun, surf, jobs, snakes, terrible pies, money, and the opportunity to buy your own home.
In NZ, the magical 20% deposit is often touted as your entry fee into the home ownership game. Trouble is, it takes about 65 years to save it and by the time you get there house prices have increased another 300%.
In Australia, the Federal Government has made it a bit easier to jump on that first rung. First home buyers can participate in the First Home Guarantee Scheme. This is a mechanism that allows first home buyers to purchase a home with as little as 5% deposit.
What are the advantages of a First Home Guarantee?
Minimum 5% deposit - no need to save for years.
No Lenders Mortgage Insurance - LMI is a terrible and costly tool that is / was inflicted upon low deposit borrowers. The first home guarantee removes LMI from the equation.
Better interest rate - the lender treats you like an 80% Loan to Value Ratio (LVR) customer. So, you get the better rates; saving you around 0.5% (or more) on your interest rate.
It's FREE. You don’t pay for a first home guarantee.
Applies for existing homes and new homes.
Do Kiwis qualify for a First Home Guarantee?
Yes - New Zealand citizens qualify. You need to prove you hold a sub class 444 visa, which is easy to obtain (via a VEVO). NZ citizens still need to meet the standard qualification criteria.
What are the standard qualification criteria?
You are buying your first home in Australia. Now, this is where Kiwis hold a bit of an advantage, as it doesn’t matter if you own or have owned a property in NZ.
Owner-occupied property only. It’s not for investment property purposes.
Property price caps apply. These are different across the various states and territories. These price caps are increasing on October 1. They are, in my opinion, pretty generous.
How can you get in on this action?
You’re a NZer that wants to buy a home in Australia. You have a minimum of 5% of the purchase price available for your deposit*
*must be “genuine savings”, which can include withdrawn Kiwisaver and family gifts.
You will need to complete the necessary paperwork and provide the required documents. This is where a good mortgage broker comes in. Can I recommend a good mortgage broker that knows how to get Kiwis a home loan? Yes!! … here’s the contact information. P.S. It’s me
Paul Davey
Uno Home Loans
+61 (0) 423688811
You can also check out my website https://www.kiwihomebuyersaustralia.com.au/ for a wealth of information about buying a home in Australia.
Give ‘em a taste of Kiwi!
Comments