Big Win for First Home Buyers: Own Your Home with Just 5% Deposit & No LMI

From 1 October 2025, the pathway to home ownership becomes more accessible for eligible first home buyers, thanks to the Government's decision to bring forward the 5% deposit scheme. This initiative will allow aspiring homeowners to purchase a property with as little as a 5% deposit and pay no Lenders Mortgage Insurance (LMI), making the dream of home ownership more achievable than ever.

What Does This Mean for First Home Buyers?

Eligible buyers will be able to secure their first property under highly favourable conditions:

• Sydney: Properties up to $1.5M

• Brisbane: Properties up to $1M

• Melbourne: Properties up to $950K

In addition:

• No income caps will apply

• The property must be owner-occupied

• Unlimited spots are available

This policy change eliminates one of the biggest financial hurdles for first home buyers—LMI—which can often add tens of thousands of dollars to the cost of purchasing a home.

Why Is This Important?

For many Australians, saving a 20% deposit while property prices continue to rise has been a significant challenge. This scheme provides an opportunity for first home buyers to enter the market sooner, bridging the gap between saving and buying.

With the removal of income caps and the introduction of unlimited places, the scheme opens the door wider than ever before, making it more inclusive and accessible.

How Pegasus Finance Group Can Help

At Pegasus Finance Group, we understand that purchasing your first home is one of the biggest financial decisions of your life. Our team of experienced mortgage brokers can guide you through every step of the process—from understanding eligibility to securing the best possible loan tailored to your circumstances.

We specialise in helping clients:

• Navigate government incentives

• Compare loan options across multiple lenders

• Streamline the approval and settlement process

Final Thoughts

This government initiative represents a significant opportunity for first home buyers to step into the property market sooner with less financial strain. If you are considering purchasing your first home, now is the perfect time to explore your options.

Get in touch with Pegasus Finance Group today to discuss how you can take advantage of the 5% deposit scheme and move one step closer to owning your dream home.

Disclaimer: Eligibility criteria applies.