Gold Coast First Home Buyers: Could You Buy with Just a 5% Deposit?
If you've been dreaming of owning your first home on the Gold Coast but think you need a 20% deposit, you might be surprised.
Many eligible first home buyers in Queensland can purchase a property with as little as a 5% deposit and avoid paying Lenders Mortgage Insurance (LMI) through the Australian Government's First Home Guarantee.
With property values continuing to grow across the Gold Coast, getting into the market sooner can make a significant difference. This initiative is designed to help eligible buyers purchase a home earlier without waiting years to save a larger deposit.
What is the First Home Guarantee?
The First Home Guarantee is an Australian Government initiative that allows eligible first home buyers to purchase a home with a deposit of as little as 5%, without paying Lenders Mortgage Insurance.
Normally, buyers with less than a 20% deposit are required to pay LMI, which can add thousands of dollars to the upfront cost of buying a home. Under this scheme, the Government guarantees part of the loan, allowing eligible buyers to avoid this expense.
What are the benefits?
Eligible buyers may be able to:
Buy a home with a minimum 5% deposit, plus purchase costs.
Avoid paying Lenders Mortgage Insurance.
Access competitive home loan interest rates.
Take advantage of Queensland first home buyer stamp duty concessions where applicable.
Enter the property market sooner rather than continuing to rent while saving a larger deposit.
Who may be eligible?
You may qualify if you:
Are an Australian citizen or permanent resident.
Are a first home buyer, or have not owned property in Australia in the past 10 years.
Intend to live in the property as your principal place of residence.
Have saved at least a 5% deposit.
Are a single parent with a minimum 2% deposit.
Meet your lender's income, servicing and credit requirements.
Property price limits in Queensland
The scheme currently allows eligible buyers to purchase properties valued up to:
$1,000,000 in Brisbane, the Gold Coast and other major Queensland centres.
$700,000 in the rest of Queensland.
These limits make the scheme particularly relevant for many buyers looking in suburbs such as Robina, Merrimac, Varsity Lakes, Mudgeeraba, Carrara and the surrounding Gold Coast area.
Is this the right option for you?
Many buyers assume they need a huge deposit before they can start house hunting. In reality, there may be options available that could help you purchase much sooner than expected.
Whether you're renting, saving for your first home, or simply wondering what's possible, it's worth speaking with a finance professional to understand your borrowing capacity and whether you're eligible for government assistance.
Thinking about buying your first home?
At Team Karyn O'Dea, we work with first home buyers across Robina and the wider Gold Coast every day. We can connect you with trusted mortgage professionals, explain the buying process and help you find a property that suits your goals and budget.
If you're ready to take the first step towards home ownership, get in touch with our team. We'd love to help you make your first move with confidence.