For many first-home buyers, the deposit isn’t just a figure on paper — it’s the wall blocking the path to property ownership. Rising house prices, rents that drain savings, and the social pressure of feeling left behind (“everyone else is either travelling or buying”) can leave would-be buyers discouraged before they even begin.
According to Tash Kessel, Associate Buyers Agent, this frustration doesn’t just affect buyers, it also shapes the pipeline of future clients for agents.
“When people think a deposit is out of reach, they delay engaging, stall on offers or walk away completely,” she says. “the deals are lost before they’ve even begun.”
Yet the reality is that there are more pathways into home ownership than most people realise, and the new rules around deposits have changes the ways that could bring many sidelined buyers back into play.
Agents who can explain these changes clearly, she adds, stand to win the trust, and the business of a whole new group of clients.
For decades, the 20 per cent deposit has been treated as gospel.
It remains the safest way to avoid paying Lenders’ Mortgage Insurance (LMI), but it is no longer the only route into the market.
As of yesterday, a new national scheme allows buyers to purchase with just 5 per cent deposit, no LMI and, importantly, no income or property price caps.
For instance, in Sydney, the price limit will rise to $1.5 million and Mortgage broker, Dean Friedlander of Brampton Finance, says the shift could reshape the buying landscape almost overnight.
“If you’re a first-home buyer purchasing a property under $1.5 million, you may only need a 5% deposit, provided you can service the loan,” he says.
“For single parents, it’s even more accessible – a 2% deposit could be enough, and you might avoid paying LMI altogether.”
He cautions that the 20 per cent deposit still makes financial sense if your buyers have the time and income to save, but the barrier to entry has clearly moved.
“With as little as 5%, you can enter the market sooner, start building equity early, and avoid missing out as prices rise, which they often do faster than most can save,” says Dean.
Tash notes that while plenty of government incentives already exist, many first-home buyers either do not know about them or miss the deadlines.
The newly-established October 2025 expansion is different, she says. It will remove income limits, lift price caps and simplify access, making it a true game-changer for those with strong cash flow but modest savings.
Other state and federal initiatives can still make a difference, including the First Home Owner Grant for new builds and off-the-plan properties, as well as stamp duty exemptions and concessions that can deliver significant upfront savings when applied for on time.
Parents stepping in as guarantors has become increasingly common, but it is not risk-free.
Dean says it works best when the buyer is financially stable, the guarantor is secure, and there is a clear plan to refinance or release the guarantee within three to five years.
It can become dangerous if repayments stretch the buyer too far, if the market is volatile or if the guarantor does not fully understand the legal obligations.
To do it safely, formal documentation is critical; lenders require a Guarantee Agreement, a Independent Legal Advice Certificate, the guarantor’s property and mortgage details, and the borrower’s loan application.
Dean also recommends a private memorandum of understanding and a clear exit strategy to protect relationships as well as finances.
The new policy changes will obviously expand the buyer pool and speed up decision-making for those who feel locked out, and agents who can explain how schemes work, connect clients with the right brokers and solicitors, and provide timely guidance will keep deals alive and pipelines healthy.
Tash believes this is also a moment for agents to redefine their role.
“Every conversation about deposits is a chance to move a buyer from ‘not yet’ to ‘yes’,” she says.
“When you can simplify the rules and show what’s really possible, you’re not just selling property, you’re building trust.”
