Your deposit is only one part of the cash plan.
The deposit is the amount you contribute to the property price. Buying costs sit beside it and can include transfer duty, conveyancing, building or pest inspections, loan fees and moving costs. A stronger plan keeps some room after settlement rather than sending every available dollar into the purchase.
A smaller deposit may increase the loan-to-value ratio and can affect lender options, pricing or lenders mortgage insurance. The right starting point is the full cash position, not a deposit percentage viewed on its own.
- Deposit available now
- Purchase costs that may apply
- Emergency buffer after settlement
- Expected property price and type
- Any gift, guarantee or scheme conditions
Grant, duty relief and the Australian Government 5% Deposit Scheme are different.
Victoria has separate first-home support measures. The First Home Owner Grant is tied to eligible new homes and has its own conditions. First-home-buyer duty relief is a separate assessment based on the transaction and current Victorian rules.
The Australian Government 5% Deposit Scheme is another separate pathway. Participating lenders assess eligibility and submit applications under the scheme. Do not assume that qualifying for one measure means you qualify for the others.
- New or established property
- Purchase price and contract details
- Whether all buyers meet first-home and residency rules
- Owner-occupier requirements
- Participating lender and scheme assessment
If this support is important to the purchase budget, check the official rules before signing a contract. Thresholds, dates and eligibility can change.
Build a repayment budget before a borrowing target.
A lender assessment and a comfortable household budget are not the same thing. Start with the repayment range that leaves room for normal life, property costs and rate changes. Then compare it with the likely purchase price and cash position.
- Council rates, owners corporation and insurance
- Repairs and maintenance
- Changes to transport or commuting costs
- A repayment buffer for rate changes
- Savings left after settlement
If the plan only works at the maximum estimate, the next useful step is usually to change the price, timing or savings target before changing the loan.
Prepare for pre-approval without treating it as a guarantee.
Pre-approval can help define a search range, but it is conditional and time-limited. Final approval still depends on updated circumstances, supporting documents, the property and the lender assessment at that time.
Prepare accurate information so the initial picture is useful. Avoid making large credit changes or taking on new commitments without checking how they could affect the plan.
- Current income and employment evidence
- Savings history and deposit source
- Living costs, debts and credit limits
- Identity and residency information
- Likely property type and price range
Use a simple buying sequence.
First clarify the budget and cash plan. Then check government support, compare suitable loan structures and understand the conditions attached to any pre-approval. When a property is found, arrange the appropriate legal and property checks before committing.
- Set a comfortable repayment and cash range
- Check current first-home support
- Compare loans and prepare documents
- Search within the working range
- Complete contract, property and final finance checks