How to buy your first home sooner: deposit options and government support

Buying your first home may be closer than you think. While saving a deposit can take time, you may not need a 20% deposit to get into the property market.

Whether you're just starting to save or you're ready to buy, BankVic can help you understand your home loan options and the government support available to eligible buyers. 

You may not need a 20% deposit 

A common misconception is that your need a 20% deposit to buy a home however there are other options that could help you buy sooner and potentially not require paying LMI either. 

Depending on your circumstances, you may be eligible for: 

  • First Home Buyers – eligible first home buyers may be able to purchase a home with as little as a 5% deposit, without paying LMI  
  • Single parents and legal guardians – eligible single parents or single legal guardians may be able to purchase a home with as little as a 2% deposit, without paying LMI  

Both initiatives are part of the Australian Government's 5% Deposit Guarantee Scheme. 

Our Home Loan Mentors can help you understand which government initiatives you may be eligible for and how they could work alongside a BankVic home loan. 

Maximise your borrowing power 

Your borrowing capacity is based on your income, expenses and existing debts. As the bank for police, BankVic understands police pay structures. Eligible overtime and allowances may be considered when assessing your application, helping provide a more complete picture of your borrowing capacity. Use our borrowing power calculator and see how much you may be able to borrow. 

Explore government support 

Depending on your circumstances, you may also be eligible for government initiatives designed to make home ownership more accessible, including: 

  • Australian Government 5% Deposit Scheme   
  • First Home Owner Grant (where available)  
  • First Home Super Saver (FHSS) Scheme, which may allow eligible first home buyers to use voluntary super contributions towards their home deposit. Visit the Australian Taxation Office (ATO) website to check your eligibility and learn how the scheme works.  

Our Home Loan Mentors can help you understand how state-based assistance works alongside Australian Government schemes and discuss the options that may be available to you. You can also have a look at our Financial Wellbeing Hub article, Government support: making home ownership more achievable for more information which may assist your understanding. For the latest property price caps and eligibility requirements for the Home Guarantee Scheme, visit the Housing Australia website. 

Ready to take the next step?   

Reach out to our BankVic Home Loan Mentors to help you find out what type of home loan is right for you.   

We’re here to help   

If you have any questions about buying your first home, visit The Australian Government 5% Deposit Scheme or call 13 63 73 or book an appointment with a BankVic Home Loan Mentor.  

The information in this article was current as at the time of publication only. Information on our website about the Australian Government 5% Guarantee Scheme is general in nature. Whilst we have taken steps to ensure the information is accurate, we don’t guarantee it is complete and it should not be relied on as personal advice. All loan applications are subject to lending criteria and approval. Terms, conditions, fees and charges apply which are available upon request. Police Financial Services Limited ABN 33 087 651 661 - trading as BankVic | AFSL and Australian Credit License 240293.