The First Home Buyer’s Guide to Building a Modular Home

Buying your first home is a huge step. And thanks to the new Australian Government 5% Deposit Scheme, that step just got a lot smaller.

Starting this month, eligible first home buyers in Australia can get into a home with just 5% deposit, no income limits, and higher property caps.

If you’re looking at building instead of buying an established home, you might want to consider a modular build. At Swanbuild, we’ve broken down the insights and how you can use the scheme and build your first, smart modular home with our team.

1. What the 5% Deposit Scheme Means for You 

Traditionally, first home buyers needed to save about 20% of a property’s value for a deposit, which could take years. But under the new scheme, you can save much less and still avoid paying Lenders Mortgage Insurance (LMI).
So for example, under the new scheme:

• If you’re buying a home in regional Victoria, NSW or South Australia and it falls under your state’s property cap, you could be looking at just 5% of the purchase price as your deposit.
• This makes building a modular home much more accessible in an achievable time frame.
• That said: you’ll still need to factor in things like legal fees, site works, permit costs and servicing.

What to check for your state:

• Verify the property price cap for your region (Victoria, NSW or South Australia) to ensure your planned build fits.
• Make sure you meet other eligibility criteria: such as being a first-home buyer and intending to live in the home, so you can take full advantage of the scheme.

2. Why Modular Building is a Smart Match for First Home Buyers

When you think of building a home, you often imagine heaps of planning and coordination of tradespeople, which can lead to long delays, escalating costs and weeks of chaos. Modular building flips that concept entirely. Thanks to the unique way that modular homes are built, you can expect faster turnaround times as many components of your home are built in factory conditions while your site gets prepared, resulting in delays due to the weather, material shortages or finding the right trades, as our homes are built in highly controlled surroundings.

With a modular build, you can plan upfront more accurately, feeling more secure in your outbound expenses, which helps when you’re working with a tighter budget as a first-home buyer.

Swanbuild’s Simply Home inclusion package gives you a solid base, designed for cost-effectiveness. And if you want a little more, the Life Made range lets you tailor finishes and features without blowing the budget.

For first home buyers, these advantages mean you can get a high-quality home built for your lifestyle without the surprises and long waits that often come with conventional builds.

3. How to Use the Scheme + Modular Build Together 

Getting started begins with finance pre-approval under the 5% deposit scheme. Knowing your borrowing capacity early helps set a clear budget and makes the rest of the process smoother.

Next, choose your block, whether you’re building in town, on a rural property, or somewhere regional. Take note of things like slope gradient, orientation, access, and any special conditions, such as flood or bushfire zones.

After you’ve got these things sorted, it’s time to select your modular home design. With Swanbuild, you can choose a compact layout that fits comfortably on a smaller block, or a larger design that makes the most of open rural spaces.

While your home is being built off-site, you can prepare your land, clearing the block, setting footings, and connecting essential services. That way, once the modules arrive, installation can start straight away.

Next, finalise your build and inclusion package. The Simply Home package gives you great value, giving you everything you need, while the Life Made option allows you to tailor finishes and features to your lifestyle, all with clear, upfront pricing.

Once your modules are complete in our factory, delivery and installation happen quickly and efficiently, meaning far less time spent waiting than with a traditional build.

Before long, you’ll be ready to move in. With your site prepared, modules installed, and finishing touches complete, you’ll be living in your beautiful new home, and sooner than you thought possible.

4. Important Things to Consider 

While this is an exciting opportunity, there are some things you’ll want to keep front of mind during the first time buying process:

1. A smaller deposit (5%) means a larger loan-to-value ratio (LVR). That can mean higher repayments and greater risk if property values falter.
2. The scheme expands who can access it (no income cap, unlimited places) but you still must prove you can service the loan.
3. Using modular builds doesn’t remove all the usual build considerations: site access, planning permits, bushfire/flood zones, service connections, and these can add cost/time.
4. While modular builds tend to be faster and more controlled, you’ll still want to check inclusions, finishes, upgrade costs and whether you’ll incur extra for things like steep blocks or difficult terrain.

5. How Can Swanbuild Support Your Modular Build Journey 

If you’re stepping onto the property ladder for the first time, there’s a lot to think about; budget, design, timeline, and location, but Swanbuild makes the process simple.

We have modular homes that are designed with first-home buyers in mind, offering smaller, efficient layouts that don’t compromise on quality or comfort. You can choose from tailored inclusion levels to suit your budget, starting with the Simply Home base and upgrading only where it matters most.

With regional delivery across Victoria, NSW, and South Australia, you’re not limited to city living, and our team supports you every step of the way, from your first site visit to the day your home is delivered and finished.

Best of all, with the new 5% Deposit Scheme now available, building your first home with Swanbuild is more achievable than ever.

Your Next Steps 

Ready to get things moving? Here are your next steps to your first time home:

1. Check your eligibility for the 5% deposit scheme on the official site.
2. Contact Swanbuild for a consultation: bring your block, your budget, your timeframe, and ask about the most suitable packages for your situation.
3. Collate, and ask questions early: site works, orientation, slope, bushfire/flood zoning, timeline from factory module to on-site installation.
4. Planning your budget: deposit, stamp duty (check your state), site‐prep costs, service connections.
5. Finalising your design: once you’ve chosen your package and site, you’ll be ready to move into build mode, faster than a conventional home in many cases.

For first home buyers across regional Victoria, NSW and South Australia, the combination of the new 5% deposit scheme and a modular build with Swanbuild opens a door. A door to owning your own home sooner, with less deposit, less risk of budget blow-outs, and a home tailored to your life.

If you’re ready to jump in or just want to explore your options, reach out to our team today!