First home buyer guides
The 5% Deposit Scheme in Geelong: What First Home Buyers Need to Know
The 5% Deposit Scheme can help eligible Geelong first home buyers purchase with a deposit from 5% without Lenders Mortgage Insurance. The current Geelong property cap is $950,000; lender approval and other eligibility rules still apply.
Saving a deposit can feel like a moving target. While you are putting money aside, you are also paying rent and keeping up with everyday costs.
The Australian Government 5% Deposit Scheme may help eligible buyers purchase sooner. But a smaller deposit still needs to sit within a sensible buying plan.
How does the scheme work?
Eligible first home buyers can purchase with a deposit from 5% without paying Lenders Mortgage Insurance. The government provides a guarantee to the participating lender.
The scheme has no income caps or limit on places. Lender approval, borrowing capacity and the remaining eligibility rules still apply.
This is a loan guarantee. You remain responsible for repaying your home loan.
What is the Geelong property price cap?
The current cap is $950,000 for Melbourne and the designated Geelong regional centre. Other Victorian areas have a $650,000 cap.
Both the purchase price and the lender-assessed property value must meet the applicable limit. Confirm the exact suburb, state and postcode through the official tool and your participating lender.
What does a 5% deposit look like?
| Purchase price | Illustrative 5% deposit |
|---|---|
| $600,000 | $30,000 |
| $650,000 | $32,500 |
| $700,000 | $35,000 |
| $750,000 | $37,500 |
| $950,000 | $47,500 |
These figures cover the deposit only. Allow separately for any stamp duty, conveyancing, inspections, lender fees, moving costs and a cash buffer. The deposit payable under the purchase contract also needs to be agreed; scheme eligibility does not automatically change the seller’s contract terms.
Should you spend up to the cap?
Your comfortable budget may be well below $950,000. I would rather see you buy a suitable home with room in your budget than stretch yourself simply because the scheme allows a higher purchase price.
Start with your broker or lender, then build a property brief around what you can comfortably afford.
Talk it through with me
I can help you turn that approved budget into a practical Geelong property search.
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