Key Takeaways
- Eligible first home buyer accountants can often buy with a 10% deposit, and sometimes 5%, with no LMI through the professional waiver.
- First home buyers can also use the First Home Guarantee to buy with a 5% deposit without LMI, with the income caps now removed.
- A guarantor or the First Home Super Saver Scheme can further reduce the deposit hurdle, and some paths may be combined.
- Every path is still assessed at the actual rate plus 3 percentage points, so serviceability, not just the deposit, decides approval.
For first home buyers, saving a 20% deposit can take years, and in a market where variable rates sit around the 6% mark and prices keep moving, those years can be costly. Accountants are in a better position than most, because the profession opens up low-deposit paths that other first home buyers cannot use, on top of the government schemes available to everyone. The question is which of these paths fits your situation, since they work differently and are not always combinable.
Working out which low-deposit route suits you as a first home buyer is something a specialist mortgage broker for accountants can map against your deposit and income. This article explains the professional waiver, the government and family options available to first home buyers, how they compare, and the serviceability test that applies whichever path you take.
Why Accountants Have More Options Than Most
It helps to understand why a first home buyer who is an accountant starts from a stronger position. Lenders treat accountants as lower-risk borrowers because of stable income and strong career prospects, which is why the profession can access concessions other first home buyers cannot. Most importantly, eligible accountants can often have Lenders Mortgage Insurance (LMI), the premium normally charged when borrowing above 80% of the value, waived up to 90% of the property value, and sometimes 95%. That means buying with a 10% deposit, or in some cases 5%, without the premium. On top of this, accountants can still use the same government and family pathways open to every first home buyer, which is what gives them more routes to a smaller deposit.
The Low-Deposit Paths Available to You
There are several distinct ways a first home buyer accountant can reduce the deposit needed, and they suit different circumstances. Knowing how each works is the starting point.
The Professional LMI Waiver
The profession-specific route is the waiver, which lets eligible accountants borrow up to 90% of the value, and sometimes 95%, without LMI. It generally requires current membership of a recognised body and must be requested as part of the application. This is often the most straightforward low-deposit path for an accountant, since it rests on your profession rather than property caps or scheme places.
The First Home Guarantee
Available to eligible first home buyers regardless of profession, this government scheme allows a purchase with as little as a 5% deposit without LMI, with the government guaranteeing part of the loan to the lender. The income caps that previously applied have been removed, widening access, though property price caps, owner-occupier requirements, and standard lending criteria still apply.
Guarantor and Super Saver Options
A guarantor, usually a family member offering equity in their own property as security, can reduce or remove the deposit needed while avoiding LMI. Separately, the First Home Super Saver Scheme lets eligible first home buyers make voluntary super contributions and later withdraw them for a deposit, using super’s concessional tax treatment to build savings faster. These can sometimes be considered alongside the other paths.
How the Paths Compare
Because the options overlap, it helps to see how they differ rather than treating them as interchangeable. Each has a different basis and different limits.
The professional waiver rests on your profession and is not restricted by property price caps in the way the government scheme is, which can matter in higher-priced markets. The First Home Guarantee allows the smallest deposit, 5%, without relying on a waiver policy, but is subject to price caps and limited places. A guarantor can allow the highest borrowing, sometimes the full purchase price, but involves a family member taking on a limited guarantee. The First Home Super Saver Scheme helps build the deposit rather than reduce it. The right choice depends on your deposit, the property’s price, and whether a family member is able and willing to assist, which is why comparing them against your specific situation matters.
What Every Path Has in Common
Whichever route you take, one thing does not change, and it is the factor that most often determines approval. It applies equally across all of them.
Every lender must assess your ability to service the loan at the actual rate plus a buffer of 3 percentage points set by the Australian Prudential Regulation Authority (APRA), which at current rates means roughly 9%. A smaller deposit means a larger loan, so your borrowing capacity has to cover the higher repayments regardless of which path reduces the deposit. Existing debts, such as a car loan, HECS-HELP, or high credit card limits, reduce that capacity, as do high living expenses. So while these paths solve the deposit hurdle, serviceability is the test that decides how much you can actually borrow, and it is worth addressing before assuming a smaller deposit is enough.
Frequently Asked Questions (FAQs)
Can a first home buyer accountant buy with less than a 20% deposit?
Yes. Eligible accountants can often buy with a 10% deposit, and sometimes 5%, with no LMI through the professional waiver. As a first home buyer, you may also use the First Home Guarantee for a 5% deposit without LMI, a guarantor, or the First Home Super Saver Scheme, depending on your circumstances.
Is the professional waiver better than the First Home Guarantee?
Neither is universally better; they suit different situations. The waiver rests on your profession and is not bound by the scheme’s property price caps, which helps in higher-priced markets. The First Home Guarantee allows a smaller 5% deposit without relying on a waiver policy but is subject to caps and limited places. Comparing both against your situation is the way to decide.
Can I combine more than one low-deposit option?
Sometimes. For example, the First Home Super Saver Scheme builds your deposit and can sit alongside another path, and a guarantor can complement other arrangements. Some options, such as the First Home Guarantee and the professional waiver, address the same need differently, so a broker can advise which combination, if any, applies to you.
Does my partner need to be an accountant for the waiver?
Not necessarily. Where only one borrower is the eligible accountant, lenders usually require that person to hold at least a 50% ownership interest in the property. The waiver can still apply, though the exact treatment, including how a non-accountant partner’s income is counted, varies by lender.
Does a smaller deposit affect how much I can borrow?
Yes. A smaller deposit means a larger loan, and the lender assesses your repayments at the actual rate plus a 3 percentage point buffer, so you need the borrowing capacity to cover the higher amount. Reducing the deposit solves one hurdle, but serviceability still determines how much you can borrow overall.
What costs apply beyond the deposit?
Stamp duty, subject to any first home buyer concession, along with legal or conveyancing fees, inspections, and a cash buffer for after settlement. These apply whichever low-deposit path you use, so the total cash needed is more than the deposit alone, and they are worth budgeting for from the outset.
The Bottom Line
First home buyer accountants can almost always buy with less than a 20% deposit, and usually have more routes to do so than other buyers. The professional waiver allows a 10% deposit, and sometimes 5%, with no LMI; the First Home Guarantee allows 5% without LMI now that the income caps are gone; and a guarantor or the First Home Super Saver Scheme can help further. Each works differently and suits a different situation, and all of them are still assessed at the actual rate plus 3 percentage points. The practical step is to match the right path, or combination, to your deposit, your target property, and your borrowing capacity.