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Low deposit, no LMI

Australian Government 5% Deposit Scheme

About the Scheme

Imagine unlocking the door to your very own home, sooner than you ever thought possible. With the Australian Government 5% Deposit Scheme, now with expanded eligibility, you can own your first home sooner. The Scheme is for first home buyers with a minimum 5% deposit, or single parents and legal guardians with a minimum 2% deposit. From 1 October 2025, changes to the Scheme mean no income caps, no waitlists and no Lenders Mortgage Insurance, reducing your upfront costs on the path to home ownership. The Scheme was formerly known as the Home Guarantee Scheme.

Scheme details & eligibility

How it works

• The Australian Government guarantees the gap between your deposit and the usual 20% lenders require, so you avoid paying Lenders Mortgage Insurance.
• First home buyers need a minimum 5% deposit, single parents or legal guardians need a minimum 2% deposit.
• There are no income caps, unlimited Scheme places, and no waiting list to secure a spot.
• Applies to a house, townhouse, unit or vacant land to build on, existing or newly built, up to the relevant property price cap for your location.

Eligibility

• Be an Australian citizen or permanent resident
• First home buyers need a minimum 5% deposit, single parents and legal guardians need a minimum 2% deposit
• Intend to live in the property as an owner-occupier
• Meet the relevant property price cap for your location
• Meet your chosen Participating Lender's normal serviceability and credit requirements

How to apply

• 1. Check your eligibility with the online tool. It takes minutes and covers your situation, deposit and home plans.
• 2. Contact a Participating Lender, who will assess your eligibility, guide you through loan options and submit your application.
• 3. Once pre-approved, you have 90 days to find a home and sign a contract of sale, within the relevant property price cap.
• 4. Your Participating Lender manages final approvals through to settlement. Then it's time to move in.

More information