✅ 1. Low‑Deposit Home Loans (5% or even 2% deposit)

Home Guarantee Scheme (HGS) — formerly First Home Guarantee

• Buy with a 5% deposit and no Lenders Mortgage Insurance (LMI).
• LMI savings can easily exceed $15k–$35k depending on property price.
• Government guarantees up to 15% of the loan, which makes lenders more willing to approve higher LVR loans.
• From 1 Oct 2025, the scheme becomes even easier:
  • No income limits
  • No cap on number of places
  • Available to all Victorian first‑home buyers
    [vic.homebu…ers.com.au]
• Special stream for single parents allows 2% deposit.
  [natloans.com.au]

✅ 2. Traditional Loans With LMI (When Deposits Are 5–19%)

• Many buyers use LMI strategically to enter the market sooner.
• LMI can often be capitalised into the loan, avoiding upfront payment.
• This can be cheaper than waiting years to save 20% while prices rise.
  [loanworx.com.au]

✅ 3. Shared‑Equity Loans (Government Chips In 30–40%)

Help to Buy Scheme (Shared Equity Program)

• Government co‑buys 30–40% of the property with you.
• You only need to finance your portion.
• Reduces repayments & improves borrowing capacity.
• Applications open 5 December 2025.
  [financedir…ory.net.au], [firsthomeb…ers.gov.au]

✅ 4. Victorian Government Grants & Stamp Duty Concessions

First Home Owner Grant (FHOG)

• $10,000 for brand‑new homes, including off‑the‑plan.
• Property price cap: $750,000.
  [financedir…ory.net.au]

Stamp Duty Benefits

• $0 stamp duty for homes ≤ $600,000.
• Concessions for homes $600,001–$750,000.
• Significant off‑the‑plan stamp duty concessions (until Oct 2026).
  [loanworx.com.au], [financedir…ory.net.au]

✅ 5. First Home Super Saver Scheme (FHSSS)

• Make voluntary contributions into super, withdraw up to $50,000 + earnings to use as deposit.
• Benefits from lower tax rates = faster savings.
  [firsthomeb…ers.gov.au]

✅ 6. Current Interest Rates for First‑Home Buyers (Feb 2026 Data)

Rates vary by lender, but current competitive options include:

• Variable: from 5.08% p.a. (comparison ~5.13%)
• 1-year fixed: ~5.20% p.a.
• 2–3 year fixed: ~5.18–5.34% p.a.
• Maximum LVR ranges from 80–98%, depending on lender and product.
  [money.com.au]

🎯 What This Means for You

As a first‑home buyer in Victoria today, you have strong options even without a 20% deposit:

• Buy with 5% deposit & no LMI (HGS)
• Buy with as little as 2% (single parents & certain HGS streams)
• Let the government co-buy (Help to Buy 30–40%)
• Use FHSS to boost deposit faster via super
• Save thousands using stamp duty exemptions and FHOG
• Access competitive mortgage rates around the low‑5% range

You can combine many of these — for example, FHOG + Stamp Duty Exemption + HGS.

Want tailored numbers?

If you’d like, I can estimate:

• How much deposit you need
• Your borrowing capacity
• Monthly repayments across loan types
• Whether you qualify for each scheme
• Which combination of programs saves you the most

Just tell me:
Your approx income, deposit saved (if any), and target purchase price/location.

Email to info@mdmfinance.com.au or call our office on 03 9855 9290.