House prices continue to decrease from their highs of one to two years ago, but they remain significantly high in the most sought-after areas. According to CoreLogic, the median house prices of the two biggest cities – Sydney and Melbourne – stand at $1. 05 million and $775,000 respectively as of September 30, 2022.

The 20% deposit requirement has made it increasingly difficult for first-time home buyers to break into the market. However, don’t despair! Here are five ways to purchase a property without having to come up with a 20% deposit.

  1. Get family or friend support: If your parents or other relatives cannot give you money for the deposit, they may agree to guarantee some or all of your loan with the bank. This allows them to help you increase your borrowing power without needing to front any cash, if you meet all lenders’ conditions.
  2. Purchase a smaller home or consider alternative options: Saving for the 20%, for a property with three or more bedrooms, two bathrooms and a large front/back yard can be unrealistic for many. To get into the market, purchasers may want to consider alternatives such as caravans or tiny homes in order to get out of the renting trap and put potential savings to use.
  3. Manage expectations: Many people have anxiety when looking to purchase a property. To make it easier, purchasers may think about compromising on certain features or including a “fixer upper” as part of their purchase. Doing so enables them to own their own place and makes it easier to do renovations at their own pace.
  4. Find the right location: Location is key when purchasing property. If you don’t need to be geographically close to your workplace, you can use the additional flexibility to consider more rural or regional locations that might be more affordable.
  5. Take advantage of the Home Guarantee Scheme (HGS)

The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers to purchase a home sooner. The Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.

The HGS includes:

  • The First Home Guarantee (FHBG) – to support eligible first home buyers to buy their first home sooner, with a deposit as little as 5%. 35,000 places are available each financial year
  • The Regional First Home Buyer Guarantee (RFHBG) – to support eligible regional first home buyers to buy a home in a regional area. From 1 October 2022, 10,000 places are available each financial year to 30 June 2025
  • The Family Home Guarantee (FHG) – to support eligible single parents with at least one dependent child to buy a home, with a deposit as little as 2%. 5,000 places are available each financial year to 30 June 2025.
  • The New Home Guarantee (NHG) is no longer available. A NHG place reserved on, or before 30 June 2022, will still be able to progress to settlement, subject to meeting eligibility criteria and NHG requirements and timelines.

To discover more about the HGS, you can visit:

Buying property without the 20% deposit can be a daunting barrier to first-time home buyers. However, by taking into account the above strategies, purchasers can break into the property market and secure their dream home. To be eligible you must be a genuine first home buyer and earn no more than $125,000 as a single person or $200,000 as a couple.

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email –  or arrange a time for a meeting so we can discuss your requirements in more detail.

General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.