There are now four distinct pathways into the market without a 20% deposit, and choosing the right one is worth tens of thousands. The First Home Guarantee lets eligible first home buyers purchase with 5% and no LMI — uncapped places and no income caps since October 2025. Guarantor loans use family equity to replace the deposit entirely. Professional LMI waivers give doctors, lawyers, accountants and others 90–95% lending with no LMI. And straight high-LVR lending with LMI remains a legitimate 'buy now' play when prices are rising faster than you can save. We model all four against your situation — because the cheapest path depends entirely on your profile.
Common Challenges
What's Included
Our Process
Why Choose Wiseman Financial?
Frequently asked questions
What's the minimum deposit to buy a home?
With the First Home Guarantee: 5% and no LMI for eligible first home buyers. With a guarantor: potentially $0 cash deposit (costs still apply). Standard lending: 5% plus LMI with many lenders. Each has different eligibility — we confirm yours free.
Which is better — guarantor or the First Home Guarantee?
If you have 5% saved and qualify, the FHBG usually wins — no family risk involved. A guarantor suits buyers with under 5%, purchases above scheme price caps, or non-first-home buyers. Sometimes combining a family gift with the FHBG beats both.
Is paying LMI ever the smart move?
Yes — when prices in your target area are rising faster than you can save the difference, LMI is the cost of buying at today's price. We model buy-now-with-LMI against save-and-wait so it's a maths decision.
What are genuine savings and do gifts count?
Many lenders want 5% saved or held over 3 months at high LVRs. Gifts can qualify after being held 3 months, and some lenders accept 12 months of clean rental history instead. Lender selection solves most genuine savings problems.
What risk does my guarantor actually take?
With a properly limited guarantee, liability is capped at the guaranteed slice (e.g. the top 15–20% of the loan), not the whole debt — and it's released once your LVR reaches ~80%. Guarantors receive independent legal advice before signing.
Ready for Low Deposit & Guarantor Home Loans?
Free consultation, no broker fees.