How a Perth Teacher Bought Her First Home With Just 5% Deposit
Nicole had $35,000 saved and a $550,000 target — not enough for a 20% deposit. Here's how she bought in Baldivis with a 5% deposit and no LMI.
When Nicole first came to Matrix Finance, she had been saving for two years. She had $35,000 in the bank, a steady teaching income, and a clear goal: buy her own home in Perth.
The problem? She was targeting properties around $550,000, and a standard 20% deposit would require $110,000 — plus stamp duty and purchase costs on top of that. At her savings rate, she was looking at another 3–4 years before she could buy conventionally.
She’d nearly given up on the idea of buying any time soon.
What We Found
After a fact-find and quick assessment of her financial position, it became clear Nicole likely qualified for the Home Guarantee Scheme (HGS) — a federal government program that allows eligible first home buyers to purchase with as little as a 5% deposit, with the government guaranteeing up to 15% of the loan to avoid Lender’s Mortgage Insurance (LMI).
Key eligibility checks:
- ✓ Australian citizen
- ✓ First home buyer
- ✓ Annual income under the scheme cap ($125,000 for individuals)
- ✓ Purchasing a property under the WA price cap
She qualified comfortably.
The Approach
We assessed her full financial picture — income, expenses, savings history, and credit — and ran a pre-approval application through a lender participating in the HGS.
Simultaneously, we checked her eligibility for the WA First Home Owner Grant (FHOG): a $10,000 grant available to first home buyers purchasing or building a new home under $750,000.
Nicole was looking at house-and-land packages, which qualified for the FHOG. We coordinated with her settlement agent and the builder to ensure the grant was correctly applied at settlement.
The Result
Nicole purchased a newly built home in Baldivis for $535,000.
Here’s how the numbers worked:
| Purchase price | $535,000 |
| 5% deposit | $26,750 |
| LMI saved (approx.) | $12,000 |
| WA FHOG received | $10,000 |
| Stamp duty | $0 (first home concession applied) |
Her $35,000 in savings covered the deposit, costs, and gave her a small buffer. The FHOG helped top up her position going into settlement.
She settled on the property within 9 weeks of our first conversation.
Key Takeaways
You may not need 20%. The Home Guarantee Scheme genuinely opens the door to purchasing with 5% — without the ongoing cost of LMI. For Nicole, that was a $12,000 saving.
Timing matters. HGS places are limited each financial year and release in July. If you’re thinking about buying, start the conversation early so you’re not waiting for the next allocation.
Grants and concessions stack. The FHOG, stamp duty concession, and HGS can all apply to the same purchase if you’re eligible.
Outcomes reflect this specific client’s situation. Eligibility for government schemes and grants varies. Book a free call to discuss your position.