Starting today, eligible first-home buyers will be able to purchase property with just a 5% deposit under the federal government’s First Home Guarantee scheme. To coincide, Aussie Home Loans (Aussie) has launched a new First Home Guarantee Calculator, designed to show buyers which suburbs they can afford – and how much they can borrow – based on their savings.
According to Aussie, suburbs where a 5% deposit could open doors include Edgeworth in NSW, Melton South in Victoria, and Beaudesert in Queensland.
The tool highlights metropolitan and regional suburbs across each state where first-home buyers can purchase a house or unit, taking the guesswork out of property search and reducing wasted time.
With average savings ranging from $28,617.90 in the ACT to $68,147.70 in the NT, the calculator helps align expectations with reality.
The tables below highlight suburbs first home buyers could enter with a 5% deposit, based on average savings in each state. Actual outcomes will depend on individual savings levels.
Tracey Hammond (pictured), Aussie mortgage broker, said many first-home buyers are entering the market with unrealistic expectations about what their deposit can achieve.
“The disconnect between a dream home and financial reality can lead to missed opportunities, prolonged searches, and the risk of overpaying or buying a property that leaves them with little financial buffer,” Hammond said.
“Being realistic about purchasing capacity from the outset is crucial to successfully navigating the market and avoiding the pitfalls of unrealistic expectations. The challenge of saving for a deposit is also cross-generational, with many people struggling to keep up with market growth. The new First Home Guarantee is a game changer, allowing many to enter the market with just a 5% deposit.”
“The real cost of a 5% deposit is a 95% loan-to-value ratio, meaning tens-of-thousands in extra interest over the life of a 30-year loan,” Owen said.
Yet in high-rent markets, she said, rental savings can outweigh these costs.
“Big increases in rent values mean a scheme that cuts down time to save a deposit becomes more desirable,” Owen said.
Hammond added that many affordable suburbs are often overlooked in the search process.
“Because there are so many areas to search, many affordable suburbs are overlooked,” she said. “The First Home Guarantee Calculator puts affordable suburbs on the shortlist. With the calculator, first-home buyers can make informed decisions about affordability to start their property journey sooner and work towards their dream home.
“In the long run, it is much better to own a first home sooner, rather than waiting and watching the market become more out of reach.”
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