5% Deposit Scheme.
The Australian Government 5% Deposit Scheme is designed to help first home buyers get into the market sooner — with as little as a 5% deposit. Under the Scheme, the Government provides a guarantee to participating lenders so you can secure a loan covering up to 95% of the property value without paying Lenders Mortgage Insurance (LMI).
How It Works
Save a minimum deposit of 5%.
Apply through a broker or lender — lenders authorised to offer the Scheme.
The Government provides a guarantee to the lender for the remainder of the deposit (up to 15%).
You get into your new home sooner and with fewer upfront costs.
There’s also a 2% deposit option for eligible single parents/guardians — enabling even earlier entry into home ownership.
Benefits for First Home Buyers
Lower deposit requirement – Only 5% needed to qualify. Avoid costly LMI fees – The government guarantee removes the need for LMI in most cases.
Australian Government 5% Deposit Scheme – Buy Sooner with a Small Deposit.
First Home buyers
minimum with 5% deposit
Single parents or legal guardians
minimum of 2% deposit
Who Can Apply?
Australian citizens or permanent residents, aged 18+
First home buyers (or those who have not owned property in the last 10 years)
Buying a property at or below the local property price caps
Planning to live in the property as your principal place of residence
👉 Official 5% Deposit Scheme info: https://firsthomebuyers.gov.au/australian-government-5-percent-deposit-scheme
These programs are powerful tools to help first home buyers enter the market earlier and with more confidence. Each scheme has unique eligibility rules and ongoing obligations — and often lenders participate differently — so professional mortgage advice is essential to decide which option (or combination of schemes) is right for your situation.
Disclaimer: The content above is intended for general informational purposes only. It does not constitute financial, taxation or legal advice.