Aussie FIRE | Financial Independence Retire Early 63. FI case study: Should I buy my first home with a 5% deposit, or wait until I have 20%?
8 snips
Feb 27, 2026 A real first-home dilemma about buying now with a 5% deposit under the First Home Guarantee versus waiting to reach 20%. They unpack timing versus price growth, loan size and monthly repayment trade-offs. Practical tips on inspections, strata pitfalls, and backup plans like renting out are discussed. The conversation also covers pre-approval, costs of unwinding a purchase, and psychological factors of owning early.
AI Snips
Chapters
Transcript
Episode notes
Let Your Personal Priorities Drive Deposit Choice
- Make decisions aligned with personal priorities: if you prefer to reach 20% with parental help that’s valid; otherwise use the 5% scheme if you want to act now.
- Khaing prefers self-funded saving over taking family help, which shaped the hosts' recommendations.
Buy Sooner If You Intend To Buy Anyway
- Get into the market sooner if you plan to buy eventually because property price growth can outpace extra savings needed for a larger deposit.
- Dave shows a $750k example: waiting 4 years with 20% growth could add ~$150k to the purchase price, eroding the benefit of a bigger deposit.
Use The First Home Guarantee To Save Big
- Use the First Home Guarantee to avoid LMI and stamp duty where eligible, which can save tens of thousands of dollars upfront.
- Hayden and Dave estimate combined savings (stamp duty + LMI) around $50k for a ~$700k purchase under the scheme.