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

Many African families in Australia still own — or once owned — a house, flat or stand back home, and assume it disqualifies them from “first home buyer” schemes here. The truth is more nuanced and mostly good news: it depends on the scheme, and on whether you owned versus lived in the property. The federal 5% Deposit Scheme only looks at whether you’ve owned property in Australia — your property back home generally doesn’t count. The Victorian First Home Owner Grant is stricter and does look at worldwide ownership. And Help to Buy turns on whether you currently own property. This is the canonical guide for the whole African community; please confirm your specific situation with us. This is general information, not financial or legal advice.

The two distinctions that decide everything

1. Did you just own it, or did you live in it? Several schemes only count property you owned and occupied as a residence — an investment property, inherited stand, or family home you never personally lived in may not affect you.
2. Does the scheme test Australian property only, or worldwide property? This varies scheme by scheme — and it’s where most of the confusion comes from.

Scheme by scheme

The 5% Deposit Scheme (First Home Guarantee). Assesses whether you’ve owned residential property in Australia — broadly, you qualify if you haven’t owned property in Australia in the past 10 years. Property you own or owned back home in Africa generally does not disqualify you. For most African buyers, this is the headline: a house in Johannesburg, Harare, Lagos, Nairobi or Khartoum doesn’t lock you out of the country’s flagship low-deposit scheme.

The Victorian First Home Owner Grant. Looks at worldwide ownership. You’re generally ineligible if you (or your partner) have owned and occupied residential property anywhere in the world after 1 July 2000. So if you owned and lived in a home back in Africa after that date, the Victorian grant is likely off the table — though the 5% Scheme and other levers may still apply. An overseas property you owned purely as an investment, or land you never built on and lived in, may not disqualify you (the owned-vs-occupied distinction).

The Queensland First Home Owner Grant. Focuses on whether you’ve previously owned and lived in residential property in Australia. Owning property back home is treated differently from owning in Australia — but the rules are specific, so confirm your exact position.

Help to Buy (citizens only). Requires you do not currently own property. Prior ownership is fine if you’ve sold — it’s not strictly first-home-buyer-only. So if you currently own a home back in Africa, that may need to be addressed before a Help to Buy application; a property you’ve already sold doesn’t hold you back.

The takeaway: a property back home is far more likely to affect a Victorian grant claim than a Queensland one, and is most decisive for Help to Buy. We check each scheme precisely before you rely on it.

How does property back home affect what you can borrow?

Separate from scheme eligibility, an existing property shows up in your serviceability assessment:

• If it earns rent, some lenders count a portion of that rental income — but with a conservative discount, and currency and evidence requirements matter. Treat overseas rental income as a possible help, not a guaranteed one.
• If it has a mortgage or bond against it, those repayments are a liability that reduces your borrowing capacity. Declare it.
• Either way, declare it. Undisclosed overseas assets or debts discovered during the process raise questions; disclosed, they’re simply part of your picture.

One rule still governs everything: the 5% Scheme reduces your deposit, not your loan. Your income, net of commitments including any overseas mortgage, sets your borrowing capacity, capped at roughly 6.5x a single income or 6x with dependants.

A worked illustration

A couple moved to Brisbane on PR and still own a townhouse back home that they rent out. They worry they’ve “already used” their first home buyer status. In fact: the 5% Deposit Scheme doesn’t count their overseas property (it only tests Australian ownership), so they can buy a new build in a Brisbane growth corridor with a 5% deposit and no LMI. The Queensland grant question turns on Australian ownership, not their property back home. Their overseas rental income might be partially counted, while any bond on it is a declared liability. They buy an $880,000 package, with the 5% Scheme and stamp duty exemption removing most of the upfront cash. (Illustrative; your numbers and the rules will need confirming for your case.)

What if I’m thinking of selling my property back home?

That brings in your origin country’s exchange-control rules (for example South Africa’s SARB, Zimbabwe’s RBZ, or Nigeria’s CBN) and possibly tax on both sides — specialist territory. If selling is part of your plan (to clear a Help to Buy hurdle, or to fund your deposit), get qualified cross-border advice on timing, tax and transfer mechanics. We’ll point you to the right specialists rather than guess rules that change. See also: Bringing Money From Africa for Your Deposit.

How does Low Deposit Homes help?

We confirm, scheme by scheme, exactly how your property back home affects your eligibility and your borrowing — before you rely on anything. Our finance partners (licensed brokers) review your borrowing capacity and match you to the lender whose policy suits your overseas-asset picture, so you get a full bank approval — and we find you a right-sized new-build package your income services. Where selling or transferring overseas property or funds is involved, we connect you with cross-border specialists.

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 beyond — and match you to the area that fits your life, not the other way around.

Worth knowing early: settlement is not handover — the land title transfers at settlement; the keys come at handover, often months later.

Frequently asked questions

I own a house back home in Africa — can I still use the 5% Deposit Scheme?
Generally yes. The 5% Scheme assesses Australian property ownership only, so your overseas property typically doesn’t disqualify you.

Does my overseas property affect the First Home Owner Grant?
In Victoria, yes — the VIC grant counts worldwide owned-and-occupied property after 1 July 2000. In Queensland, the test focuses on Australian ownership. Confirm your exact position.

Can I use Help to Buy if I still own property back home?
Help to Buy requires you don’t currently own property; prior ownership is fine if sold. Current overseas ownership may need addressing first.

Will my overseas rental income help my application?
Possibly — some lenders count a discounted portion, with currency and evidence requirements. Any bond on the property is a liability you must declare.

Should I sell my property back home?
That’s a cross-border tax and exchange-control decision needing specialist advice. We’ll connect you with the right people.

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 work out exactly how your property back home affects your options here.

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

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

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.