Buy your first Gippsland home with as little as a 5% deposit and no lenders mortgage insurance. Your plain-English 2026 guide from a local Traralgon broker.
Rated 5 from 131 Reviews
The First Home Guarantee is the Australian Government scheme (run through Housing Australia) that lets eligible first home buyers purchase with as little as a 5% deposit while paying no lenders mortgage insurance. Normally, anything under a 20% deposit means LMI — often $10,000–$25,000 added to your loan. Under the guarantee, the government backs the gap instead, and that cost simply disappears.
For Gippsland buyers the maths is compelling: on a $450,000 home in Traralgon or Warragul, the difference between saving a 20% deposit ($90,000) and a 5% deposit ($22,500) is years of saving — years in which prices and rents keep moving. The guarantee collapses that wait.
The scheme was significantly expanded from late 2025: income caps were scrapped and the cap on annual places was removed, so buyers who previously earned "too much" to qualify are now eligible. If you looked into the scheme a couple of years ago and were knocked back on income or missed out on a place, it’s genuinely worth checking again — the rules that stopped you may be gone.
Eligible single parents and single legal guardians can buy with as little as a 2% deposit under the Family Home Guarantee — and you don’t need to be a first home buyer, just not a current property owner. On a $400,000 home in Morwell or Moe, that’s an $8,000 deposit.
The guarantee combines with the state incentives: the $10,000 First Home Owner Grant for new builds in regional Victoria, and Victoria’s stamp duty exemption (zero duty under $600,000, concession to $750,000 — check yours on our stamp duty calculator). A first home buyer building new in Gippsland can realistically enter with a 5% deposit, no LMI, no stamp duty and a $10,000 grant.
Scheme places are reserved through participating lenders at application time — you don’t apply to the government directly. Our job: check your eligibility, pick the participating lender whose assessment suits your situation, reserve your place, and run the application to settlement. It costs you nothing — the lender pays us at settlement. Start with the borrowing power calculator, then book a free chat.
We’re Gippsland’s first-home-buyer specialists — helping buyers in Traralgon, Morwell, Moe, Warragul, Drouin, Sale and right across the region. Rated 5.0 from 131 Google reviews. Call 1300 442 497.
Very likely yes — the income caps were scrapped in the late-2025 expansion. If income was what stopped you before, the door is open again. We'll confirm your full eligibility in one free chat.
A minimum genuine-savings component applies with most lenders, but gifted funds and other sources can often make up part of the 5%. The rules differ by lender — we'll match you to one that fits how your deposit is made up.
Yes — house-and-land and new builds are eligible, and that's where the stacking gets powerful: 5% deposit, no LMI, the $10,000 regional First Home Owner Grant, and potentially zero stamp duty on the land value.
Price caps cover typical homes in nearly every Gippsland town — that's one of the big advantages of buying here rather than Melbourne. We'll check your target town's current cap before you start inspecting.
1. Understanding Your Needs
Your mortgage journey begins with a detailed consultation with your Finance & Mortgage Broker. Your broker will listen to your property goals, whether you’re buying a home, investing in real estate, or seeking a commercial loan. They will assess your financial situation, considering factors like income, savings, liabilities, and credit history, to provide tailored advice on loan options available to you.
2. Financial Positioning
The next step involves your broker conducting a thorough evaluation of your financial position. This includes reviewing your income, bank statements, assets, liabilities, credit history, and savings. Your broker will then calculate your borrowing capacity, helping you understand how much you can afford to borrow and how much your monthly repayments might be. Your broker will also assess whether you qualify for any interest rate discounts or government schemes, like first-home buyer grants
3. Comparing Loan Options
Once your financial situation is fully assessed, your broker will begin comparing loan products from a range of lenders across Australia. They will help you weigh the benefits of fixed interest rate loans versus variable interest rate loans, as well as exploring options for offset accounts and interest rate discounts. They will also explain important terms like loan features, fees, and other considerations like the potential for future rate changes or LVR adjustments.
4. Pre-Approval Process
Pre-approval is a crucial step in the property buying process. With pre-approval, you’ll have a clear idea of the loan amount you can borrow, which strengthens your position in the local property market. Your broker will help you gather the necessary documents and submit them to the lender for pre-approval, ensuring the process is as quick and straightforward as possible.
5. Submitting the Loan Application
Once pre-approval is in hand, your broker will help you complete the loan application. They will guide you through submitting all necessary paperwork to the lender, including documents like bank statements, proof of income, and details of existing liabilities. Your broker will communicate directly with the lender to ensure the application is processed quickly, ensuring no delays in getting you the loan you need.
6. Loan Approval & Settlement
After your loan is approved, your broker will review the final loan offer with you and help arrange any necessary insurance, such as mortgage protection insurance. They will also work with you to ensure you understand the terms of the loan and guide you through the settlement process. Your broker will remain available to help you navigate any final hurdles before you complete the purchase of your property.
7. Finalising Ownership
The final step is settlement, when your loan is officially advanced, and you take ownership of the property. Your broker will coordinate with the lender and conveyancer to ensure the transfer goes smoothly. Once the settlement is complete, you’ll officially become the owner of the property, and your Finance & Mortgage Broker will continue to offer guidance to help you manage your loan and stay on track with repayments.
JS
Joanne Shih
Outstanding Broker — Highly Recommend. Dougal has been an absolute pleasure to work with throughout the whole process. He’s incredibly easy to talk to and always quick to respond — even late at night or on weekends — which made a huge difference whenever I had questions or concerns. He’s clearly very sharp with numbers and knows how to structure things properly, which is exactly what you want in a broker. He handled communication with the banks really well, so I didn’t have to stress or deal with all the unnecessary back and forth myself, and I always felt like my needs were the priority. What I appreciated most was that he actually took the time to go through my financial situation and discuss strategies with me — something other brokers I spoke to didn’t really do. Even though my case was high LVR, the loan was approved within 2 months of our first contact, which I was really happy with. Most importantly, he was incredibly patient with all my overthinking and endless questions, and never once made me feel rushed or silly for asking. Couldn’t recommend Dougal more highly.
MK
Matt Kay
Communication was great from the start to the end with a great result. Dougal and the team know what there talking about and made the experience smooth and stress free.
SH
Sophie Hildebrand
Had a really great experience working with Dougal. He was professional, easy to communicate with, and made the whole process smooth and stress-free. Always quick to answer questions and kept us informed every step of the way. Highly recommend!
We can help with Home and Investment Loans, Construction Loans, Car Loans, Personal Loans and much more. If you're looking to borrow to buy something, we can probably help.
Mortgage Brokers are there to help you find the right loan whether it be from the major banks, smaller lenders or other sources. We have a broad range of products (more than any single lender can offer) which means we can do all the legwork to find the right loan for you.
Of course! We believe that we can find the best interest rate for you to refinance to, whether it's a Home Loan or Investment Loan.
We love helping First Home Buyers! We're experts at the entire process and can help you get the right Home Loan. We're also across the various schemes to help First Home Buyers such as the First Home Owners Grant and the various stamp duty exemptions available.
All of our Mortgage Brokers are accredited and members of the Mortgage and Finance Association of Australia. They are extremely professional and provide exceptional service across a range of lending options.
We take look at a wide range of products available from Banks, Credit Unions & other lenders across the country. This means we can search thousands of products and make sure we're always recommending the best Home Loans for our clients.
Money Sense Finance Pty Ltd trading as Money Sense Lending. ABN: 68 687 032 373. Credit Representative #569124 is authorised under Australian Credit License #232706.
Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
