Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme makes home ownership more achievable by helping you buy sooner with a small deposit, supported by a Government guarantee.
What is the Australian Government 5% Deposit Scheme?
You could be a home owner before you know it.
We know how hard it is to save for a deposit when you’re renting, working and studying. That’s why we’ve signed on as an approved lender for the Australian Government 5% Deposit Scheme (Scheme), which supports eligible homebuyers purchase a home sooner.
The Scheme allows eligible home buyers to purchase a home with a deposit of as little as 2% for single parents, and 5% for first home buyers. The guarantee removes the (often significant) cost of Lender’s Mortgage Insurance (LMI) which is something you would usually pay if you have a deposit of less than 20%. This is because the Australian Government provides a guarantee to a participating lender so they can lend the home buyer up to 95% or 98% of the home’s value.
How does it work?
The Australian Government 5% Deposit Scheme is for aspiring home buyers – first home buyers with a minimum 5% deposit, or single parents or legal guardians with a minimum 2% deposit.
There are unlimited places available under the Australian Government 5% Deposit Scheme from 1 October 2025. These places support eligible home buyers to purchase a new or existing home.
This means, from 1 October 2025, you can apply for the Australian Government 5% Deposit Scheme, with a deposit of between 2% and 5%, to purchase a home and you won’t need to pay Lenders Mortgage Insurance (LMI).
Who it's for
First Home Buyers
The Scheme helps eligible first home buyers who have saved a minimum 5% deposit with a Government guarantee.
Single Parents or Legal Guardians
The Scheme helps eligible single parents or legal guardians who have saved a minimum 2% deposit with a Government guarantee.
First home buyers
The Australian Government 5% Deposit Scheme helps you buy your first home with a minimum 5% deposit with a Government guarantee. No income caps, no waitlists and no LMI means you have lower upfront costs and could own your first home sooner.
Eligibility criteria
To qualify for the scheme, you’ll need to meet the list of eligibility criteria below:
- You are purchasing a home to live in yourself or with one other person (no investment properties)
- You're a first homebuyer or have not owned a property in Australia in the last 10 years
- You’re aged over 18
- You’re an Australian citizen or permanent resident of Australia
- You’ve saved a minimum deposit of 5%
Be purchasing
- A residential property
- If you’re building, the loan also includes construction costs to build a residential property on the land you want to buy
- You stay under the price caps for each state and region
- You must apply for a Principal and Interest loan (no Interest-Only loans)
Find out more about the eligibility criteria on the Government Scheme website.
Single parents or legal guardians
The Australian Government 5% Deposit Scheme helps you into your new family home if you have saved a minimum 2% deposit with a Government guarantee. No income caps, no waitlists and no LMI helps get you into your own home sooner.
Eligibility criteria
To qualify for the scheme, you’ll need to meet the list of eligibility criteria below:
- You're an eligible single parent (single mum or dad) or single legal guardian with at least one dependant
- You’re aged over 18
- You’re an Australian citizen or permanent resident of Australia
- You’ve saved a minimum deposit of 2%
- You're intending to be the owner-occupier of the purchased property (no investment properties)
- You’re purchasing the property on your own (no joint applications)
- You do not currently own property, or upon settlement of the guaranteed property you're buying, are not intending to own a separate property
Be purchasing
- A residential property
- If you’re building, the loan also includes construction costs to build a residential property on the land you want to buy
- You stay under the price caps for each state and region
- You must apply for a Principal and Interest loan (no Interest-Only loans)
Find out more about the eligibility criteria on the Government Scheme website.
What are the property price caps?
The Australian Government 5% Deposit Scheme gives you the flexibility to choose the type of home that suits your lifestyle, location and budget, right across Australia.
Both the purchase price and the home's value (as assessed by Bank Australia) must stay at or below the cap. For building a new home on vacant land with separate contracts, the total land price plus build costs need to come in under the cap too.
Check the Postcode Search Tool to find the price cap for your desired location. It's only a guide - confirm with us for any home you're considering buying.
Property price caps are the same for first home buyers and single parents.
| Location | Property price cap effective 1 October 2025 |
|---|---|
| NSW - capital city and regional centre* | $1,500,000 |
| NSW - other | $800,000 |
| VIC - capital city and regional centre* | $950,000 |
| VIC - other | $650,000 |
| QLD - capital city and regional centre* | $1,000,000 |
| QLD - other | $700,000 |
| WA - capital city | $850,000 |
| WA - other | $600,000 |
| SA - capital city | $900,000 |
| SA - other | $500,000 |
| TAS - capital city | $700,000 |
| TAS - other | $550,000 |
| ACT | $1,000,000 |
| NT | $600,000 |
| Jervis Bay Territory and Norfolk Island | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
*Regional centres are (1) in New South Wales - Illawarra, Newcastle and Lake Macquarie, (2) in Victoria - Geelong, and (3) in Queensland - Gold Coast and Sunshine Coast.
Helpful tools
Postcode Search Tool
Check the Postcode Search Tool to find the price cap for your desired location.
Eligibility Tool
You can use the Government's eligibility tool to answer a series of questions to find out if you're eligible.
Home loan repayment calculator
Work out how much you will need to repay on your home loan.
