The New 5% Deposit Scheme in Australia – Starting 1 October 2025

https://youtu.be/CzpXfk9I-SQ

Buying your first home in Australia just got a little easier. From 1 October 2025, the government’s new 5% Deposit Scheme will officially launch, making it possible for first-home buyers to get into the market sooner with a smaller deposit.

As the director of Truth Group, I work with clients every day to plan their mortgage and property journey. Here’s what the scheme means for you, and how I can help you take advantage of it.

What is the 5% Deposit Scheme?

Under the scheme, first-home buyers can purchase a property with as little as 5% deposit, while the government guarantees the remaining 15% of the loan. This means you won’t need to pay Lenders Mortgage Insurance (LMI), which can often cost tens of thousands of dollars.

At Truth Group, I can help you:

• Check if you’re eligible for the scheme
• Compare lenders who are participating
• Structure your loan so you save on interest and fees

Who Can Apply?

This scheme is more flexible than previous versions:

• No income caps – all first-home buyers are eligible
• No annual quotas – places are unlimited
• No postcode restrictions – applies across metro and regional areas

I guide my clients through the application process to ensure all paperwork is correct and lenders have the confidence to approve their loan.

Updated Property Price Caps

The new caps mean buyers can now consider a wider range of homes:

• Sydney – up to $1.5 million
• Melbourne – up to $950,000
• Brisbane – up to $1 million
• (Other states and regions have also seen increases)

If you’re unsure how these limits apply to you, I can help shortlist properties that fit your budget and strategy.

Benefits of the Scheme

With the right planning, the 5% Deposit Scheme could help you:

• Save $25,000–$42,000 in LMI costs
• Cut 6–10 years off saving time for a deposit
• Enter the property market sooner and start building equity

As a mortgage broker, I make sure you get the most competitive loan available. As a buyer’s agent, I also help you find, assess, and negotiate the right property — not just any property.

Risks to Consider

While the scheme has clear advantages, you should also think about:

• Market competition – more buyers may drive up prices
• Repayments – a smaller deposit means a larger loan balance
• Servicing rules – lenders still assess your income and expenses

That’s why I always run detailed mortgage planning sessions with my clients before they commit.

How Truth Group Can Help You

At Truth Group, I offer a unique combination of services:

• Mortgage planning – to get your loan approved on the best terms
• Buyer’s agent support – to help you search, shortlist, and purchase the right property
• Property investment guidance – to build a long-term strategy, not just a one-off purchase

This way, you don’t just buy a home — you make a confident step toward financial security.

Final Thoughts

The 5% Deposit Scheme is a major opportunity for first-home buyers starting 1 October 2025, but it’s not a one-size-fits-all solution. The right guidance can make all the difference between simply buying a property and building a smart financial future.

👉 If you’re thinking about using this scheme, contact me at Truth Group. I’ll help you plan your mortgage, navigate the scheme, and secure the right home or investment property.

#BuyersAgentsSouthWestSydney #FirstHomeNextHomeBuyers #HomeAndLandPackages #HouseAndLandPackages #HouseAndLandPackagesQLD #mortgageBroker #mortgageBrokering #mortgageMakeover #mortgagePlanner #mortgagebrokeraustralia #mortgagebrokersydney #mortgagebrokertips #PropertyInvesting

How Age Impacts Borrowing Capacity in NSW

https://youtu.be/I5l9Ur3dbOU

A Guide for Older Buyers Planning Investments or Downsizing

If you’re an older buyer in NSW—whether you’re planning to invest in property or downsize into something easier to manage—it’s important to understand how age can impact your borrowing capacity. Lenders look closely at your stage of life, income sources, and future plans before approving a loan.

Why Lenders Consider Age

Banks and lenders have a responsibility to ensure you can repay your loan comfortably. For borrowers over 50, here’s what that often means:

• Shorter loan terms: Instead of a 30-year term, you may be offered 10–20 years.
• Income checks: Lenders assess how reliable your income is—whether it’s from employment, pension, rental returns, or superannuation.
• Exit strategies: They want to see how you plan to clear the debt in retirement, such as through downsizing, super withdrawals, or selling an investment property.

How This Impacts Borrowing Capacity

Strategies for Older Borrowers

• Use Your Equity: Access the equity in your current home to strengthen your position.
• Consider Joint Borrowing: If applying with a younger partner, lenders may offer longer terms.
• Be Clear on Your Exit Plan: Showing a strategy for how the loan will be repaid builds lender confidence.
• Work With the Right Broker: Some lenders are more flexible with older borrowers than others.

Where Mortgage Planning Meets Property Search

At Truth Group, I don’t just help you with the finance side. Mortgage planning is about putting together the right loan structure for your stage of life—but the loan is only part of the story.

I also act as a buyer’s advocate, helping you search, shortlist, and secure properties that match your goals—whether it’s downsizing, building an investment portfolio, or leveraging your assets for future security. This dual approach means you’re not left juggling the finance and property search separately—I bring both together to give you a clear path forward.

Final Thoughts

Age doesn’t need to hold you back from achieving your next property goal in NSW. With the right plan and the right property strategy, you can still move forward with confidence.

👉 If you’re at the other end of the spectrum and just starting out, check out our guide on the Top NSW Suburbs for First-Time Home Buyers in 2025.

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What You Need to Know Before Applying for a Home Loan Today

Applying for a Home Loan Isn’t What It Used to Be

In the past, applying for a home loan was fairly straightforward. You’d hand over a couple of payslips, have a chat with your local bank, and you’d likely walk away with a loan.

But today? It’s a completely different ball game.

Lenders now want to see your full financial picture — not just your income. They look deeper into your spending habits, financial stability, and documentation. And if anything doesn’t match, your application could get declined.

My Role as Your Mortgage Broker

As a mortgage broker, I work for you — not the banks.
My job is to:

• Understand your financial situation
• Help you choose the right loan
• Make sure your application is solid before it’s submitted

But to do that properly, I need full and accurate information from you.

Example: Why Accurate Income Matters

Let’s say you fill out a fact-finding form and say you earn $85,000 per year.
That figure must be backed up by your documents — otherwise, it won’t stack up with the lender.

What Documents Will You Need?

Here’s what most lenders require upfront:

• Recent payslips
• Full bank statements (3–6 months)
• Tax returns and ATO Notices of Assessment
• Proof of deposit or savings
• Details of any loans or credit card debts
• Rental income statements (if you own investment property)

And if you’re self-employed, don’t stress — there are low doc loan options, but these still require solid financial evidence like:

• Business bank statements
• BAS (Business Activity Statements)
• A letter from your accountant confirming income

Remember: low doc doesn’t mean no doc.

Yes — Lenders Really Read Your Bank Statements

Many clients are surprised to learn how closely lenders examine their spending habits. Your bank statements reveal a lot — not just how much you earn, but how you manage your money.

Here are some common red flags:

• Heavy spending on Uber Eats or takeaway
• Afterpay or Zip Pay debt
• Gambling transactions
• Constant low balances or overdrawn accounts
• Minimal savings at month-end

If you’re spending most of your income and not left with much by the end of the month, that could hurt your borrowing power.

My Job Is to Protect Your Application

I won’t submit your application unless I’ve reviewed everything and I’m confident your numbers are solid.

That means:

• Your income is clearly documented
• Your expenses are reasonable and consistent
• You’ve got a financial story the lender will feel confident in

The last thing you want is to get knocked back because of missing or mismatched paperwork.

Ready to Buy or Refinance?

Whether you’re:

• A first home buyer
• Upgrading to a new place
• Investing in property
• Or simply wanting to refinance for a better deal

Let’s talk.

I offer a free 15-minute strategy call — no pressure, no sales pitch. Just straight answers and a clear next step based on your numbers.

Click below to book your free chat, call me on 0426 259 327 Got questions click the chat box on bottom left get instant answers.

Nicko Parpis
Mortgage Broker & Buyers Agent
Truth Group Pty Ltd – Helping You Buy Smarter & Borrow Better

#BrandNewHomes #BuyersAgentsHoxtonPark #BuyersAgentsSouthWestSydney #FirstHomeNextHomeBuyers #FirstHomeAndNextHomeBuyers #HomeAndLandPackages #HouseAndLandPackages #HouseAndLandPackagesNSW #HouseAndLandPackagesQLD #mortgageBroker #mortgageMakeover #mortgagePlanner #mortgagebrokersydney #mortgagebrokertips #PropertyInvesting