Should you buy your first home with a 5% deposit, or wait until you have 20%? In this episode, Hayden and Dave sit down with listener Khaing to unpack the numbers and the trade-offs.

Khaing is in their late 20s, earning $125,000 and saving around 50% of their income. With roughly $68,000 available, they are weighing up the First Home Guarantee scheme against waiting a few more years to build a bigger deposit and take on less debt.

In this episode they cover:

👉 How the 5% deposit scheme works and the potential savings on LMI

👉 Whether waiting for 20% really reduces risk if property prices keep rising

👉 What repayments could look like compared to Khaing’s current rent

👉 How to think about worst-case scenarios, including renting the property out

👉 What to look for in an apartment, including strata costs and building quality

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Disclaimer

Any advice is general and does not consider your financial situation needs, or objectives, so consider whether it’s appropriate for you. You should also consider seeking professional advice before making any financial decision.

Pearler is an Authorised Representative #1281540 of Sanlam Private Wealth Pty Ltd AFSL #337927. Read the FSG available from https://pearler.com/financial-services-guide

If you are considering any of the products we spoke about during the show, be sure to read the Product Disclosure Statement & Target Market Determination available from the product issuer’s website before deciding.

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63. FI case study: Should I buy my first home with a 5% deposit, or wait until I have 20%?

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%?