Think you need a 20% deposit to buy a home on the Gold Coast? Think again. This guide debunks the 20% myth and explores the real-world options for buying with a smaller deposit. Learn about low-deposit loans, Lenders Mortgage Insurance (LMI), and powerful tools like the Home Guarantee Scheme and Guarantor Loans that can get you into your first home sooner.
For anyone dreaming of buying their first home on the Gold Coast, the single biggest hurdle can feel like saving the deposit. You’ve probably heard the magic number—20%—and felt a little discouraged. But is that the only way into the property market?
The good news is, it's not. Let's break down how much you really need and the powerful strategies that can get you into your own home sooner.
Why is 20% the "Magic Number"?
The 20% figure is considered the traditional benchmark because it's the point at which most lenders do not require you to pay Lenders Mortgage Insurance (LMI). LMI is a one-off insurance premium that protects the lender (not you) in case you can't meet your loan repayments. Paying LMI isn't a bad thing; it's a tool that allows the bank to lend to you with a smaller deposit.
The Reality: Buying with a 5% Deposit
The truth is, many lenders will happily offer you a home loan with a deposit as low as 5% of the purchase price. While this does mean you'll likely need to pay LMI, it can get you onto the Gold Coast property ladder years sooner. For many, the capital growth they gain by getting into the market early can far outweigh the initial cost of LMI.
Your Toolkit for a Smaller Deposit
Saving is only half the battle; the other half is strategy. Here are the most powerful tools available to Gold Coast first home buyers right now:
- The Home Guarantee Scheme: This is a genuine game-changer. As of October 2025, this massively expanded government scheme can allow you to buy a property on the Gold Coast up to $1,000,000 with only a 5% deposit and no LMI. The government effectively acts as your guarantor for the remaining 15%.
- A Guarantor Loan: This is another powerful way to avoid LMI. A close family member (usually a parent) can use the equity in their own home to provide additional security for your loan, giving the lender the confidence to lend you up to 100% of the purchase price.
- The QLD First Home Owner Grant: If you're buying or building a brand-new home, this government grant can provide a significant cash boost to your deposit savings.
Don't Forget the Other Costs
Remember, your deposit isn't the only upfront expense. You'll also need to budget for costs like Stamp Duty (government tax) and legal/conveyancing fees. As your mortgage broker, we provide a full, transparent breakdown of all expected costs so you can create a realistic savings goal with no surprises.
The path to homeownership on the Gold Coast is not one-size-fits-all. A 20% deposit is great, but it's far from the only way. The key is having a smart strategy tailored to you.
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