For many first home buyers, entering the property market can feel overwhelming. Rising property prices, increases to the cost of living, and the challenge of saving a large deposit often make home ownership seem out of reach.
But the reality is that there are now more pathways into the Australian housing market than many people realise.
With government schemes, low-deposit lending options, and family guarantee strategies available, first home buyers have more flexibility than ever before. The key is understanding how to use these options effectively.
The Deposit Challenge (And How to Overcome It)
Traditionally, buyers were expected to save a 20% deposit to avoid additional costs like Lenders Mortgage Insurance (LMI). However, that benchmark is no longer the only path forward for purchasing property.
Many lenders now offer solutions that allow buyers to purchase with as little as a 5% deposit, sometimes even less depending on the scenario.
These options can include:
- First home buyer government schemes
- Gifted funds or alternative savings
- Low deposit home loans (up to 95% LVR)
- Family or parents going as guarantor
This means buyers may be able to enter the market years sooner than they initially thought.
A Strategy That Can Change Everything: Family Guarantees
One of the most powerful tools available is a family (or parental) guarantee.
For parents who may not have cash available to gift, this strategy allows them to use equity in their own property as additional security for their child’s loan.
This can help buyers:
- Enter the market sooner
- Avoid Lenders Mortgage Insurance (LMI)
- Potentially secure better interest rates
- Purchase with a smaller deposit — or even no deposit
Importantly, most lenders structure guarantees so they only cover a portion of the loan, not the full amount, helping reduce risk for the guarantor.
First Home Buyer Client Example
We recently worked with a young couple who had saved a 5% deposit and were looking to purchase a $1.2 million home.
After factoring in stamp duty and purchase costs, they realised they would be left with virtually no savings after settlement a situation many first home buyers face.
This becomes a problem, particularly when properties in that price range often require upgrades or renovations.
After discussing a family guarantee option with both the clients and their parents, we restructured the loan.
The result?
They were able to:
- Complete the purchase
- Cover all upfront costs
- Retain approximately $90,000 in savings
This gave them the flexibility to renovate key areas like the kitchen or bathroom — adding value to the property and accelerating equity growth.
Building Your First Home: Another Smart Path with Bold Living
Buying an established home isn’t the only way to enter the market.
Through our relationship with Bold Living, we also help first home buyers explore building a new home as an alternative — which can often be more cost-effective and come with additional incentives.
Building can offer:
- Access to new home builder incentives and grants
- Fixed pricing (reducing uncertainty during construction)
- Brand new, low-maintenance homes
- The ability to customise your layout and finishes
Bold Living currently offers a range of valuable inclusions and promotions, including their Smart Inclusions offer.
For many buyers, combining a low deposit strategy with a house-and-land package can be a powerful way to get into the market sooner — often with less upfront cost than purchasing an established property.
At SW Brokerage, we work closely with both the lender and builder to ensure everything is structured correctly from the start, making the process smooth and stress-free.
Important Things to Know About Family Guarantees
While powerful, family guarantees do come with strict lender requirements:
- Guarantors must usually be immediate family members
- The borrower must be able to service the loan independently
- The guarantee is typically limited to a portion of the loan
- Guarantors must obtain independent legal advice
- There are limits on how much can be secured against the guarantor’s property
These safeguards are in place to ensure the guarantor is not exposed to unnecessary financial risk.
Can the Guarantee Be Removed?
Yes — and this is often the goal.
Once the borrower:
- Builds sufficient equity, or
- Reduces the loan balance
the guarantee can typically be removed.
In many cases, this can happen within 1–5 years, depending on market conditions and the borrower’s progress.
At SW Brokerage, we actively work with clients after settlement to help them reach this milestone and release their parents from the loan as soon as possible.
Why Home Loan Structure Matters
Choosing the right loan structure is critical especially when dealing with low deposits or family guarantees.
At SW Brokerage, we help clients:
- Compare lenders and policies
- Structure loans to minimise risk
- Identify low deposit opportunities
- Navigate complex lending requirements
- Manage the process from application through to settlement
- We work with you ongoing and become your trusted brokerage ongoing
Because we work with a wide panel of lenders, we can often identify solutions that aren’t obvious when going directly to a single bank.
Getting Into the Housing Market Sooner
Buying property is one of the biggest financial decisions you’ll make but it doesn’t have to take decades to get started.
With the right advice and strategy, many buyers can:
- Enter the market sooner
- Retain savings after purchase
- Add value to their property faster
- Build equity earlier
There are even opportunities right now for eligible first home buyers to access cash incentives of up to $3,000, helping ease upfront costs — though these offers often come with strict criteria and timelines.
Final Thoughts
If you’re a first home buyer feeling stuck, or a parent considering helping your child into the market, it’s worth exploring what options are available.
The right structure can turn what feels impossible today into a realistic plan much sooner than you expect. Find out why we’ve got over 300 google reviews and book a free 15 minute consult today.