Effective Monday, 13 July, St.George has reduced lender’s mortgage insurance (LMI) to only $1.00 for eligible first home buyers with a loan-to-value ratio up to 85 per cent. 

To be eligible, the maximum size of the mortgage would be $850,000 on a loan worth $1 million and needs to be an owner-occupier home with principal and interest payments. 

Under the scheme, home owners with a property value of $650,000 who would usually have to make a one-off LMI insurance payment would save more than $6,000.

This means first home buyers looking to get into the market would effectively need to save a 15 per cent deposit instead of the traditional 20 per cent of the value of the property purchase price.

St.George general manager Ross Miller said: “We are seeing many pain points experienced along that savings journey, including giving up holidays, reducing entertainment expenses, having to move back home with parents, moving in with friends or even leaning on family members to help top-up savings. 

“By reducing the expense of lender’s mortgage insurance, first-time purchasers may be able to afford a property that meets their needs sooner and save thousands of dollars.” 

Saving for a deposit is one of the biggest barriers to home ownership for first home buyers, with St.George research revealing the entire process of saving and planning can take almost 10 years. 

The 2020 St.George Home Buying Report found that two-thirds (64 per cent) of first home buyers expect to face financial problems leading up to their first property purchase, including the most common difficulty, building up a deposit (50 per cent). 

Close to half (48 per cent) are saving more in order to buy in their desired area, and nearly three in every 10 first home buyers are struggling to find a property that suits their needs. 

St.George research showed that one in every 10 Australians looking to buy a home are doing so for the first time and that the COVID-19 pandemic has made one-third of Australians want to save for that goal quicker. 

“Australians have spent more time at home than ever before during the COVID-19 restrictions, and we are seeing a bigger trend in how the nation is re-evaluating their current living situation. For example, three-quarters of people would now prefer to live in a house over an apartment,” Mr Miller said. 

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

Property

Zagga's ninth anniversary sees focus on investor education in real estate private credit

In a significant milestone, Zagga, a key player in the Australian real estate sector, is celebrating its ninth anniversary with a renewed commitment to investor education. The company has grown ...Read more

Property

Australian property’s quiet pivot: resilience hides a new competitive map

Australia’s housing market remains sturdier than the macro noise suggests, but the sources of resilience have shifted. For operators, the profit pool is migrating from ‘volume at any price’ to ...Read more

Property

Gen Z’s 5% deposit rush: how policy‑driven demand is reshaping Australia’s housing value chain

A government-backed 5% deposit guarantee has triggered a surge in first-home buyer intent among Gen Z, pulling forward demand and resetting competition across banks, brokers and buildersRead more

Property

Cautious bidders, smarter sellers: a Queensland auction case study on repricing risk

Queensland’s auction market has hit a caution cycle as buyers price in higher borrowing costs, global uncertainty and cost-of-living pressure. Clearance softness is forcing agencies to re-engineer ...Read more

Property

Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance

NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more

Property

Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances

After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more

Property

Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it

Deposit redirection scams are quietly eroding buyer savings and agency reputations in Australia’s property market. This case study unpacks how a mid-tier real estate group redesigned its settlement ...Read more

Property

The $12m threshold: Why portfolio value, not property count, now defines Australia’s investor elite

The old yardstick of six properties as shorthand for investment success has been overtaken by a harsher reality: in today’s market, elite status is defined by balance-sheet strength, not asset countRead more