By Chaice Paterson, CEO & Founder, Low Deposit Homes | Updated June 2026

Buying a first home in Australia works differently from most African countries, and the rules reward those who understand them. This is the plain-English, step-by-step guide for African migrants — South African, Zimbabwean, Nigerian, Kenyan, Sudanese, South Sudanese and beyond. The headlines: you can buy a brand-new home with a 5% deposit and no Lenders Mortgage Insurance through the federal 5% Deposit Scheme; permanent residents qualify for almost every scheme from the day PR is granted; and one rule sits behind everything — these schemes lower your deposit, but your income still has to service the loan. Here’s the whole process, start to finish.

Step 1: Work out what you can actually borrow

Everything starts with serviceability — how much a lender will lend based on your income, minus your commitments and living expenses. A few points that matter specifically for African families:

• The schemes mainly reduce your deposit, not your loan. The 5% Deposit Scheme and Family Home Guarantee cut the deposit you need — and because they waive LMI and can come with a competitive scheme interest rate, they can also lift your borrowing capacity a little. Only Help to Buy reduces the loan itself (via government equity, citizens only).
• Sensible limits apply. A responsible loan rarely exceeds roughly 6.5 times a single income, or 6 times where you support dependants.
• Your income type matters. Registered nurses usually have overtime and allowances counted at 100%. NDIS and support workers across multiple casual jobs need the lender that aggregates all streams, not just the main job.
• Commitments count. Remittances home, and parents living with you (who count as dependants), reduce capacity — but never disqualify you.

Step 2: Build your deposit

With the 5% Deposit Scheme, your target is just 5% of the package — for example $37,250 on a $745,000 Melbourne home or $47,500 on a $950,000 Brisbane home. You can build it from:

• Australian savings.
• The First Home Super Saver Scheme ($15,000/yr counted, $50,000 lifetime per person), built inside super.
• A community savings payout — stokvel, susu, chama, ajo, mukando or sanduk — documented and disclosed.
• A gift — with a gift statutory declaration.
• Accessible funds from home — moved through compliant channels and documented (retirement funds are a separate, specialist question — see Bringing Money From Africa for Your Deposit).

The universal rule: every dollar of your deposit must be evidenced and disclosed. Never leave an unexplained lump sum on a bank statement.

Step 3: Get a full approval BEFORE you choose a home

This is where the way we work protects you. You get a full bank approval before you’re placed on any package — you never sign for a home you’re not approved to finance. Your finance is handled by our finance partners, who are licensed mortgage brokers — they review your borrowing capacity and match you to the right lender.

Step 4: Choose the right new-build package

For a house-and-land package, you’re buying land plus a build contract. Our standard is a 4-bed, 2-bath, 2-car home with a multi-purpose room — the best layout for your family within budget, with no upselling. Low Deposit Homes builds across Queensland and Victoria, so these are examples of where the value is strong, not the only places you can buy. Popular corridors include Brisbane’s western Ipswich corridor (Collingwood Park, Redbank, Redbank Plains, Ripley) and the Logan growth corridor (packages typically $830,000–$1 million), and Melbourne’s western, northern and south-eastern growth corridors (and Geelong) (packages frequently $650,000–$850,000) — with similar value in other QLD and VIC growth areas. We match you to the corridor that suits your work, family and budget.

Step 5: Understand settlement vs handover

This trips up almost every first home buyer. Settlement is not handover.

• Settlement is when the land title transfers into your name — the legal completion of the land purchase.
• Handover is when you get the keys to the finished home — often months later, after the build is complete.

In a new-build estate, your deal may sit as “conditional, awaiting registration” while the land is formally registered. That’s completely normal. The build then proceeds through stages — slab, frame, lock-up, fixing, completion — to handover.

How do the schemes fit together?

Permanent residents (189/190/186) qualify for everything except Help to Buy from the day PR is granted; citizens add Help to Buy. Temporary visa holders (e.g. 482) are excluded and should transition to PR first; 491 holders should confirm eligibility with a broker.

A typical journey, end to end

You book a free consultation. We assess your serviceability and confirm which schemes your visa unlocks. You build your 5% deposit from savings, the FHSSS, a community savings payout or a gift. A licensed broker secures your full approval. We match you to a new-build package your income comfortably services — say a $745,000 home in one of Victoria’s more affordable growth corridors with the full Victorian stack, net cash in around $30,500. You sign, the land registers (settlement), the build runs its stages, and months later you collect the keys (handover) — never stretching beyond what your income carries.

How does Low Deposit Homes help?

We guide every step: serviceability, scheme selection, deposit structuring, full approval through our finance partners (licensed brokers), package selection, and the build journey to handover — with no upselling. We build across Queensland and Victoria — from the Ipswich and Logan growth corridors in Brisbane to Melbourne’s western, northern and south-eastern growth corridors (and Geelong) — and match you to the area that fits your life, not the other way around. See also: How Low Deposit Homes Helps African First Home Buyers.

Frequently asked questions

How much deposit do I really need?
With the 5% Deposit Scheme, 5% of the package plus some fees — far less than 20%, and no LMI.

Do the schemes let me borrow more?
Mostly they lower your deposit rather than your loan — but because they waive LMI and can come with a discounted scheme interest rate, they may lift your borrowing capacity slightly. Help to Buy goes further and lowers the loan itself. Your income is still the main driver of how much you can borrow.

Why do I need approval before choosing a home?
So you never commit to a package you can’t finance. It protects you.

What’s the difference between settlement and handover?
Settlement transfers the land title; handover is when you get the keys to the finished home, often months later.

Can a permanent resident do all this?
Yes — everything except Help to Buy, from the day PR is granted.

Do I have to buy in a particular suburb?
No. The corridors mentioned are examples of where we build and where the value is strong — we build across Queensland and Victoria and match you to the area that suits your work, family and budget.

Your next step

Book a free 15-minute consultation and we’ll walk you through your numbers and the whole process.

Book your free call → Book your free call | 1800 920 172

Related reading: African & Sub-Saharan First Home Buyer Guide (pillar) · How Low Deposit Homes Helps African Buyers · Community Savings Deposit Guide · Bringing Money From Africa for Your Deposit.

Related guides: Queensland first home buyer guide · Victoria first home buyer guide · Grant Eligibility Calculator · Borrowing Power Calculator

Low Deposit Homes operates under Winning Homes Australia Pty Ltd (ACN 633 321 758). All calculations indicative. Not financial advice.