Owning a home in Melbourne has long been considered a dream for many Australians. But for first home buyers, especially in a high-growth market like Melbourne, rising prices and tight lending conditions have made that dream feel increasingly out of reach. Fortunately, 2025 brings new hope — thanks to innovative low deposit home loan options and government-backed schemes, first-time buyers now have smarter pathways to enter the property market.
Whether you’re struggling to save a 20% deposit or simply want to fast-track your buying journey, this guide will walk you through the most practical low deposit home loan options available in Melbourne, and why working with a professional buyers agency can make all the difference.
A low deposit home loan allows buyers to purchase property with a deposit significantly smaller than the standard 20%. Typically, this means as little as 5%, and in some cases, as low as 2%. These loans are particularly useful for first home buyers with strong income and credit history but limited savings.
However, it’s essential to understand that loans under 20% deposit usually incur Lenders Mortgage Insurance (LMI) unless supported by a government scheme like the First Home Guarantee. LMI can add thousands to your total loan cost, so seeking support options is crucial.
Melbourne buyers in 2025 are in a favourable position with access to several government and lender-backed low deposit schemes.
First Home Guarantee (FHG): Under this federal initiative, eligible buyers can purchase with a 5% deposit without paying LMI. In 2025, the scheme has expanded to support more single parents and regional buyers. Learn more.
Victorian Homebuyer Fund: A shared equity scheme where the state government contributes up to 25% of your property purchase, allowing you to buy with just a 5% deposit. This means lower repayments and no LMI. Explore the options.
Keystart Loans: While more common in WA, these low deposit loans are gaining attention nationally for offering flexible lending and reduced upfront costs. Check Keystart for eligibility.
NAB Home Guarantee Scheme: NAB continues to be a preferred lender under the FHG, offering competitive interest rates for low deposit borrowers. View NAB’s offering.
When every dollar counts, expert guidance can mean the difference between a smart purchase and an expensive mistake.
A Buyers Agent Melbourne helps first home buyers navigate the market confidently. Unlike real estate agents who represent sellers, a buyers agent works exclusively for you — the buyer. Whether you're purchasing in the inner suburbs or outer growth corridors, a Buyers Agency Melbourne can help identify undervalued properties, access off-market listings, and negotiate favourable terms.
When you’re using a low deposit loan, there's little room for error. A licensed Property Buyers Agency Melbourne can assess property condition, location prospects, and comparable sales to ensure you’re not overpaying. They also help manage contracts, settlement processes, and align your property search with loan limits and government criteria.
For tailored guidance and local expertise, consider working with The Realta Property Buyers Agency. As one of the best buyers agent Melbourne has to offer, Realta ensures your first home is a smart, strategic investment — not just a dream come true.
Low deposit home loans are transforming the landscape for first home buyers in Melbourne. In 2025, with expanded schemes and lender competition, entering the property market is more achievable than ever — even without a 20% deposit.
But navigating these options successfully requires planning and support. From leveraging government programs to securing a great deal, having the right experts on your side makes all the difference. Partner with trusted advisors like The Realta Property Buyers Agency to buy smarter, sooner, and with confidence.