Yes, though the specifics vary by state and change periodically — grants, stamp duty concessions, and the federal First Home Guarantee (which lets eligible buyers purchase with as little as 5% deposit without paying Lenders Mortgage Insurance) are all still running. Eligibility depends on factors like property price caps, income limits, and whether you’re buying new or established. Because these thresholds shift, it’s worth checking current eligibility before you commit to a purchase price.

Under a standard loan, 20% is the common deposit ($100,000 on a $500,000 property, $140,000 on a $700,000 property) to avoid Lenders Mortgage Insurance. However, many first home buyers use the First Home Guarantee scheme to purchase with as little as 5% deposit ($25,000 and $35,000 respectively) without paying LMI, subject to eligibility and property price caps in your state. There are also lower-deposit options outside the scheme that involve paying LMI instead.

It’s possible in some circumstances, particularly for lower-priced properties or with First Home Guarantee eligibility, but it depends heavily on the purchase price, your income, and the state you’re buying in. A $10,000–$20,000 deposit typically only clears the 5% threshold on properties in the $200,000–$400,000 range, so it usually applies to regional or lower-cost markets rather than most metro areas. Your broker can quickly tell you what’s realistically achievable at your price point.

As a rough guide, lenders typically look for gross household income in the range of $90,000–$110,000 to comfortably service a $500,000 loan, and $110,000–$135,000 for a $650,000 loan, though this varies significantly based on existing debts, dependents, expenses, and the interest rate used for serviceability testing (which includes a buffer above the actual rate). These are indicative only — an accurate borrowing capacity assessment needs to look at your actual financial position.

A 5% deposit on a $600,000 property is $30,000. Under the First Home Guarantee, this can be enough to buy without paying LMI, provided you meet the scheme’s income and property price cap requirements for your state. Outside the scheme, a 5% deposit is still often accepted by lenders, but LMI would typically apply, adding a cost that’s either paid upfront or added to the loan.

Pre-approval (also called conditional approval) is an early indication from a lender of how much you’re likely able to borrow, based on the information you provide — it’s genuinely useful for house-hunting with confidence, but it isn’t a guarantee. Full/unconditional approval happens after you’ve found a specific property, and the lender has verified everything including a valuation of that exact property. Pre-approval typically lasts 60–90 days depending on the lender.