Buy with a 5% deposit and pay $0 LMI (First Home Guarantee)
Buy with a 5% deposit and pay $0 LMI (First Home Guarantee)
Body: The Australian Government's First Home Guarantee (the "5% Deposit Scheme")
lets eligible first home buyers purchase with as little as a 5% deposit while the
government guarantees the rest, so you don't pay Lenders Mortgage Insurance,
which can cost $25,000+ on a typical Western Sydney purchase.
What changed on 1 October 2025 (why this matters now):
No Income Caps
The old $125k single / $200k couple limits are gone
No Limit On Places
No more racing to grab a spot before they run out
Higher Price Cap
In Sydney and NSW regional centres the cap is now $1,500,000 (up from $900,000), which covers almost all of Western Sydney
Quick eligibility check (you'll likely qualify if you...)
1
Check Your Eligibility
Be an Australian citizen or permanent resident and at least 18 years old.
2
Confirm You're a First Home Buyer
Be purchasing your first home, or not have owned property in Australia within the last 10 years.
3
Plan to Live in the Property
Intent to move into the home and use it as your principal place of residence.
4
Meet the Financial Requirements
Have saved at least a 5% deposit and be buying a property within the price cap for your area.
Not sure if your suburb or situation fits? That's exactly what the free call is for.
The Non-Scheme Pathways
Not eligible for the scheme? You still have great options. Intro: The First Home
Guarantee is fantastic, but it's not the only way in. If you're above the price cap, don't
meet the criteria, or simply have other advantages, here are three proven pathways we
use every week.
01
Family Guarantee (Guarantor) Loan
A parent or close family member uses the equity in their home as limited security for part of your loan (often around 20%). This can let you buy with little to no deposit, skip LMI entirely, and borrow up to 100% of the purchase price. Their guarantee is released once you've built enough equity. We'll structure it carefully and make sure everyone understands their role.
02
LMI Waiver for Professionals
Are you a doctor, dentist, allied-health professional, lawyer, accountant (CA/CPA) or engineer? Select lenders waive LMI up to 90–95% of the property value for eligible professions, saving anywhere from around $15,000 to over $40,000. Eligibility depends on your profession, income and lender. We know which lenders say yes to which professions.
03
No Family Equity To Lean On And Not Eligible For The Scheme
A parent or close family member uses the equity in their home as limited security for part of your loan (often around 20%). This can let you buy with little to no deposit, skip LMI entirely, and borrow up to 100% of the purchase price. Their guarantee is released once you've built enough equity. We'll structure it carefully and make sure everyone understands their role.
04
20%+ Deposit (No LMI, Best Rates)
If you've saved a 20% deposit, you can avoid LMI altogether while still taking advantage of the First Home Owner Grant and stamp duty concessions, where eligible and within the relevant caps. We'll compare 40+ lenders to make sure your strong position translates into the best possible deal, not just whatever your bank offers.
Why Better Borrowing?
A local broker who makes your first home feel possible.
Better Borrowing is a boutique Penrith brokerage led by Ben Leyshon, who has spent 10+ years in financial services helping people make confident decisions about their money. We believe finance isn't about numbers, it's about people. So we take the time to understand your goals, explain everything in plain English, and do the heavy lifting for you.
Your Path To The Keys - In 4 Simple Steps
Step 01
Book Your Free Strategy Call
Choose a time that suits you. It takes just 15 minutes and there's no obligation.
Step 02
Share Your
Details
Tell us your goals. We’ll uncover eligible options and take care of the paperwork.
Step 03
Compare 40+
Lenders
We find the right loan structure, lender, and strategy for your circumstances.
Step 04
Get Approved & Start Searching
We manage the process, provide guidance, and support your next move.
Frequently Asked Questions
Your First Home Might Be Closer Than You Think
The schemes have never been more generous, and you don't have to figure it out alone. Book a free, no-obligation 15-minute strategy call with Ben — and walk away knowing exactly what you qualify for and what your next step is.
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Disclaimer
Leybel Consulting Pty Ltd (90 660 320 632) trading as Better Borrowing (542864) is authorised under Australian Credit Licence 389328. Disclaimer statement: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Each application is subject to lenders terms and conditions, fees and charges and eligibility criteria apply.