Hadfield, Victoria · First home buyer case study
First-home buyers navigating their first purchase
Two incomes. Around $40,000 saved. A first home that felt out of reach—until the couple understood the support available to them.
By Chris Berry · Published 23 October 2026
The challenge: a modest deposit, despite two incomes
When this couple approached Find A Better Rate, they were ready to take their first steps into home ownership. Both were working, earning approximately $140,000 combined, and living at home while saving for a deposit.
They had built up around $40,000 in savings. Both had HECS debts, but neither had other personal debts. The couple told us they had previously been advised on several occasions that they needed more savings before they could qualify to buy.
Their deposit had become the sticking point. They had not been made aware that an eligible first home buyer could purchase with a deposit as low as 5% under a government-backed scheme, without paying lenders mortgage insurance (LMI).
Our approach: identify the pathway and arrange finance
We identified their eligibility for the Australian Government 5% Deposit Scheme and worked through the application process with them. This opened a route to purchase that did not require them to save a 20% deposit or pay LMI.
We secured pre-approval within one week. With a clearer understanding of their finance position, the couple could move ahead with their property search.
Pre-approval is conditional and is not the same as final loan approval. In this case, the process subsequently progressed to a loan approved through NAB under the scheme, without LMI.
The outcome: a contract for their first home in Hadfield
Within a month of receiving pre-approval, the couple signed a contract to purchase their first property in Hadfield, Victoria, for $530,000.
Their NAB loan has been approved under the scheme with no LMI payable. At the time of publication, they are planning to settle and move into their home in December 2026.
- Within one weekPre-approval secured
- Within one month of pre-approvalPurchase contract signed for $530,000
- Confirmed at publicationNAB loan approved under the scheme, without LMI
- December 2026 · plannedSettlement and move-in
How the 5% Deposit Scheme works
Eligible first home buyers can buy with a deposit as low as 5%, without LMI, through a participating lender. This can support borrowing up to 95% of the property value, subject to the scheme and lender requirements.
The government provides a guarantee to the lender. It is not a cash grant or a contribution towards your repayments: you remain responsible for repaying the loan.
Eligibility, property price limits and the lender’s credit assessment still apply. A smaller deposit also means a larger loan than a bigger deposit on the same property, so repayments and a financial buffer matter.
Putting 5% into perspective
5% of $530,000 = $26,500
This illustrates the scheme’s minimum deposit percentage. It is not a statement of this couple’s actual deposit or loan amount. Buying costs and any funds needed after settlement must also be allowed for.
Scheme information checked on 23 October 2026. Sources: Australian Government scheme overview and NAB scheme information.
What other first home buyers can take from this
Before assuming your deposit rules out a purchase, get a clear assessment of the options available to you. Your savings are one part of the picture, alongside income, existing commitments, buying costs, scheme eligibility and the repayments you can comfortably manage.
This couple’s HECS debts did not prevent approval in their circumstances. That does not mean those commitments can be ignored or that another application will receive the same result.
The useful first step is to understand your position—not to rush into a purchase. Explore our deposit planning guide, learn about pre-approval or use the first home buyer calculator to begin planning.
Published with the clients’ permission. Names and identifying personal details have been withheld. Income and savings figures are approximate. This account describes one client experience; approval, timeframes and outcomes vary. General information only, not a recommendation for your circumstances. Scheme rules and lending criteria can change.