Australian Government 5% Deposit Scheme - Mortgage Broker

5% Deposit Scheme - Housing Australia

 

Housing Australia is a agency that is responsible for the overseeing of the 5% deposit scheme on behalf of the Australian Government. 

 

They describe this guarantee on their website 

https://firsthomebuyers.gov.au/australian-government-5-percent-deposit-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 aspiring home buyers just like you - first home buyers with a minimum 5% deposit, or single parents or legal guardians with a minimum 2% deposit.

From 1 October 2025, the changes to the Scheme meant no income caps, no waitlists and no Lenders Mortgage Insurance. It will reduce your upfront costs and get you on the path to home ownership sooner. Whether you're eyeing a cosy apartment, family house or building on vacant land - the Australian Government can help you into a home that suits your lifestyle, locations and budget, right across the country.

We've already helped over 248,000 Australians since the Scheme commenced in 2020 - could you be next?

The Australian Government 5% Deposit Scheme was formerly known as the Home Guarantee Scheme.

 

What is it?

 

• Under normal conditions when you are looking to purchase a property with a 5% deposit you would be subject to Lenders mortgage insurance (LMI) these costs vary depending on the size of your loan but can regularly be seen between $10-30k.

• With the assistance of this scheme that LMI fee is guaranteed by the Australian Government, saving you from having to pay for it!

​

Price caps and postcode restrictions

 

• The scheme has certain restrictions in place for where and how much you are able to spend to be eligible.

  • You can find the postcode look up tool here.

• This tool will give you a breakdown of if they accept this area as a location for property within this scheme and at what price point they will allow up to.

​

How it might be suitable for you?

 

• If you meet the eligibility requirements set out in the scheme as well as meeting the requirements set out by one of the participating lenders you can take advantage of this scheme.

  • Check you eligibility here for a place in the scheme

​

Comparison Example  - 

 

• Sarah and her partner Brett are looking to purchase their first home.

• They have managed to qualify and reserve a spot on the scheme with a pre approval at one of the participating lenders.

• They have found a property in QLD for $500,000.

​

• Estimated Funds Breakdown with the scheme

  • Purchase Price - $500,000

  • Loan Amount - $475,000

  • Governments Fees and Charges - $2,020

  • LMI - $0

    • Deposit Required - $26,796

​

• Estimated Funds Breakdown without a scheme place

  • Purchase Price - $500,000

  • Loan Amount - $461,650

  • LMI - $13,270 (gets added on to loan amount)

  • Total New Loan -$474,920

  • Governments Fees and Charges - $2,020

    • Deposit Required - $40,146

​

As you can see, with the scheme you are able to purchase a property with $13,350 less savings than without it. The difference only gets bigger with the higher the purchase price is.

 

If you would like to get more information and talk with a local mortgage broker please contact us as we would love to help with your First Home Buying journey!