If you have been putting off buying your first home, 2026 might be the year the numbers work in your favour. First home buyers are re-entering the market, drawn by government incentives that make it possible to buy with a smaller deposit than many expect, particularly in growth areas like Mambourin’s Windermere community.
“First home buyers are looking for incentives and schemes that can help get them into the market with as small a deposit as possible, because a lot of people simply have not saved enough,” says David McKenzie, Lending Specialist at Southside Home Loans.
Available schemes
How much deposit do you actually need? Two schemes are doing the heavy lifting, alongside the $10,000 First Home Owner Grant:
- First Home Guarantee (5% Deposit Scheme): buy with just a 5% deposit and avoid Lender’s Mortgage Insurance (LMI). From October 2025, the scheme opened to unlimited applicants, the Melbourne and regional Victorian price cap lifted to $950,000 and income limits were removed.
- Help to Buy Scheme: the federal government can contribute up to 40% equity towards a new home (30% for established), cutting how much a buyer needs to borrow. Around 10,000 places are released nationally each year and move quickly, so it pays to apply and secure pre-approval prior to purchasing.
David recently helped a client earning around $84,000 with $18,000 in savings, buy a $550,000 property. Combining the Help to Buy Scheme, which cut her loan by up to $220,000 with no stamp duty and the $10,000 grant brought her loan to a level she could comfortably service.
“That is what is happening today. People with smaller savings are entering the market because of these schemes. The question we always receive is – how much can I borrow? But your borrowing capacity doesn’t determine what you can buy. How much you have in savings does,” David explains.
A buyer might qualify to borrow $800,000 based on income alone but without the savings to match, that capacity is largely irrelevant. That misunderstanding often leads to the biggest mistake David sees – buyers paying a deposit before they have spoken to a broker, relying on an online bank calculator instead of a genuine pre-approval.
“We then need to backtrack because they might have put the deposit down when rates were 5.5% and now, they are 6.1 or 6.2%. A genuine pre-approval, arranged before signing anything, can help avoid the risk and if you are using the Help to Buy Scheme it is mandatory before you can put down a deposit at all,” David says.
Improving your borrowing position doesn’t always mean earning more, often it is about tightening spending in the months before you apply. David recommends reviewing living expenses closely and cutting back on non-essentials like subscriptions, beauty treatments and eating out, to ensure your bank statements reflect genuine saving. Paying down small debts, like a car loan, can also make a meaningful difference to what a lender will approve.
Making money go further
For buyers weighing new versus established, the numbers favour new. A home and land package at Windermere priced at $650,000 attracts no stamp duty and comes with the $10,000 First Home Owner Grant. An established property at the same price receives neither – there is no grant and stamp duty adds $11,356 to the cost.
Southside Home Loans compares options across 46 lenders. Loan volumes are down since the start of the year and with fewer applications coming through, lenders from the major banks to smaller non-bank lenders are sharpening their rates outside the official cash rate (currently 4.35%) to win business.
“It is basic competition. Lenders want the business, so they are sharpening what they offer and that is exactly the sort of movement an independent broker can help you take advantage of,” David says.
“Save as much as you possibly can, reduce your living expenses and keep updating your budget with your broker regularly.”
If you are ready to take the next step:
- Talk to a broker first, before you fall in love with a block.
- Obtain pre-approved so you know what you can spend and can move fast when the right lot becomes available.
- Visit the Windermere Sales Gallery to see what is available and how far your deposit can go.
Contact Southside Home Loans to connect with a finance consultant and start your home ownership journey in Windermere today. Phone: 0409 770 300.
To find an affordable land lot visit the Windermere Sales Gallery at 275 Greens Road, Mambourin. Open 7 days, 11am to 5pm. Titled land is priced from $304,000*. T&C’s apply. Picture credit: Tierra Mallorca on Unsplash.
