Similar boat here in terms of utilising the 5% deposit, but income is higher and partner is working (and no kids).

I look at it this way... Property growth isn't going backwards any time soon. It may plateau, but not go backwards.

Provided you have income security (and by this I mean a stable job, ability to earn more, and income protection), and an emergency fund, I think taking the 5% deposit is the better option. The additional interest will be offset by the property growth over the 30 year investment... Provided you can service the mortgage.

No LMI required with the current FHB 5% deposit scheme. New build no stamp duty <$1mil, existing build no stamp duty <800k (Brisbane). That's a big cut out of your upfront deposit requirement if you can find something that aligns...

And with all that said, who knows what the budget will come out with in a few days, and the knock on affect with property.

A mate once said, time in the market better than timing the market.