Think you need a 20% deposit to get your foot in the door? For many first home buyers in 2026, that’s no longer the case. The federal government’s Home Guarantee Scheme lets eligible buyers purchase with as little as a 5% deposit — and without paying Lenders Mortgage Insurance (LMI), which can otherwise add thousands to your loan.
What the 5% deposit scheme means for you
Under the scheme, the government effectively guarantees the gap between your deposit and the usual 20% threshold. The result: a lower barrier to entry, no LMI premium, and the chance to stop paying off someone else’s mortgage and start building your own equity sooner.
Why pair it with a brand-new home
A smaller deposit goes even further when you buy new. In Queensland, a first home buyer purchasing a brand-new home can also access $0 stamp duty (no price cap) and the $30,000 First Home Owner Grant for a new home valued under $750,000. The boosted $30,000 amount applies to contracts signed on or after 20 November 2023, and the Queensland Government has confirmed it continues for eligible contracts going forward — there’s no looming deadline that drops the grant back down. Instead of inheriting an older home’s repairs and rising maintenance costs, you move into a property with the latest finishes, modern energy efficiency, and a builder’s warranty.
Where to start
At R2 Real Estate Co we help buyers across South East Queensland find new builds that suit these schemes — including full-turnkey, fixed-price packages in Greenbank, South Ripley, Yarrabilba and Burpengary. The path to ownership is clearer than it’s been in years.
This article is general information only and not financial, taxation or legal advice. Scheme eligibility, places and property price caps change over time — confirm current details with your mortgage broker, lender and the relevant government body before making a decision.
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