Unlock the secrets to buying with no deposit in Highfields

You can buy a home in Highfields without saving a full 20% deposit.

Several government schemes let you purchase with as little as 2% to 5% down, and lenders can sometimes structure deals using guarantor arrangements or equity from another property. The approach that works depends on your circumstances, income stability, and whether you qualify as a first home buyer.

The Australian Government 5% Deposit Scheme in Highfields

The Australian Government 5% Deposit Scheme lets eligible first home buyers purchase with just 5% down, or 2% if you're a single parent or legal guardian. Housing Australia guarantees the gap between your deposit and the usual 20% threshold, which means you avoid paying Lenders Mortgage Insurance.

There's no income cap, and the scheme applies across all participating lenders. In Queensland regional centres like Toowoomba and the Darling Downs, the property price cap is $1,000,000. Highfields sits within this regional bracket, so most family homes and land packages in the area fall comfortably under the limit. Both the purchase price and the lender's valuation need to come in at or below that cap.

You can use a variable rate, fixed rate, or split loan structure depending on which lender you go through. The scheme can't be combined with Help to Buy, but you can pair it with the Queensland First Home Owner Grant and stamp duty concessions if you're buying or building new.

How guarantor arrangements work

A family guarantor can use the equity in their own home to support your purchase, removing the need for a cash deposit or Lenders Mortgage Insurance. The guarantor doesn't hand over money upfront. Instead, they agree to secure a portion of your loan against their property, usually up to 20% of the purchase price.

Consider a buyer purchasing a home at the current Highfields median. With a guarantor covering the deposit portion, the buyer takes out a loan for the full purchase price. Once the buyer builds enough equity through repayments and property value growth, the guarantee can be released, and the guarantor's property is no longer tied to the loan. That release often happens within a few years if the market holds steady and repayments stay on track.

The guarantor remains liable for the guaranteed portion until it's formally discharged. If repayments fall behind, the lender can pursue the guarantor's property. That's why lenders assess both the buyer's income and the guarantor's financial position before approving the arrangement. It's a solid option for buyers with steady income who just haven't had time to save a deposit, but everyone involved needs to understand the commitment.

Queensland grants and concessions for first home buyers

If you're building or buying new in Highfields, the Queensland First Home Owner Grant pays $15,000 for homes valued under $750,000. The grant applies to new builds only, not established homes, and you'll need to move in within 12 months and live there for at least a year.

For stamp duty, Queensland offers two separate concessions depending on what you're buying. If you're purchasing an established home, you get a first home concession that reduces duty by up to $17,350 on properties valued under $710,000. The concession phases out gradually and disappears once the property hits $800,000. You'll still pay some duty under this concession, just less of it.

If you're buying a new home or vacant land, the concession is bigger. From 1 May onwards, the full transfer duty concession applies with no price cap, bringing duty down to nil on the residential land component. That makes a meaningful difference on land packages and new house-and-land deals, which are common across Highfields and surrounds. At least one applicant needs to be an Australian citizen or permanent resident to qualify.

You can stack these concessions with the Australian Government 5% Deposit Scheme, which gives first home buyers in Highfields a genuine pathway into the market without needing years of savings behind them.

Using equity from another property

If you already own a property with enough equity built up, you can use that equity as security for your next purchase without selling. Lenders treat the available equity in your current property as a deposit substitute, letting you borrow up to 80% of the existing property's value plus the full amount needed for the new purchase.

In our experience, this works particularly well for buyers moving from a smaller home or unit into a larger family property in one of the newer Highfields estates, or for rural buyers stepping up from a smaller acreage block. The existing property stays in your name, you don't pay Lenders Mortgage Insurance as long as the combined loan to value ratio sits at 80% or below, and you keep any rental income if the first property becomes an investment.

The lender will assess your ability to service both loans, so your income needs to support the combined debt. Interest rate buffers still apply, meaning the lender tests your repayment capacity at a rate roughly 3% higher than the actual loan rate. If your income covers that serviceability test and your equity position is strong, you can move without waiting to save a separate cash deposit.

What lenders look at when there's no deposit

Lenders assess income stability, existing debts, and credit history more closely when you're borrowing without a traditional deposit. They want to see consistent employment, ideally over the past two years, and a clean credit file with no defaults or missed payments.

If you're using the government scheme, a guarantor, or equity from another property, the lender still runs a full serviceability assessment. That includes checking your current expenses, any existing loans or credit cards, and whether your income can cover the repayments at a rate 3% higher than the loan's actual interest rate. Some lenders also apply debt-to-income limits, which cap your total borrowing at a multiple of your gross annual income.

Highfields has a strong mix of FIFO workers, tradespeople, and families with dual incomes commuting to Toowoomba. Lenders generally view regional employment in established industries as stable, but they'll want to see payslips, tax returns, and bank statements that back up your income claims. If you're self-employed or contract-based, expect to provide two years of financials and a letter from your accountant.

You'll also need to show genuine savings or evidence of consistent rent payments, even if the deposit itself is covered by a scheme or guarantor. Lenders want proof you can manage money and meet ongoing commitments. A history of steady savings, even small amounts, carries weight.

Managing repayments without a deposit buffer

When you buy with little or no deposit, your loan amount sits higher relative to the property value, and you don't have the same equity buffer if the market shifts or your circumstances change. Repayments are larger from day one because you're borrowing more, and any interest rate rise has a bigger impact on your monthly commitment.

An offset account helps. Every dollar sitting in the offset reduces the loan balance that interest is calculated on, which cuts down the interest charged each month and lets you pay off the loan faster. If you're borrowing at a high loan to value ratio, that difference compounds quickly. Some lenders offering loans under the government scheme include offset options, though not all do, so it's worth comparing home loan features during the application stage.

You're also building equity more slowly in the early years when most of your repayment goes toward interest rather than principal. If you need to sell or refinance within the first few years, you might find yourself with less equity than expected, particularly if property values stay flat. Planning for rate rises, keeping a separate emergency fund, and making extra repayments when you can all reduce that risk.

Call one of our team or book an appointment at a time that works for you. We'll walk through which options fit your income, your deposit position, and the type of property you're looking at in Highfields, and help you move forward with a structure that holds up over the long run.

Frequently Asked Questions