Australian Government 5% Deposit Scheme

Thinking or dreaming about buying your first home, but don’t think you have enough deposit?

This is really worth a look.

The Australian Government’s 5% Deposit Scheme can help eligible first home buyers purchase a home with a deposit as low as 5%, without paying Lenders Mortgage Insurance (LMI). This is because the Government guarantees part of the loan (subject to conditions).

How it works

• You contribute a minimum 5% deposit

• You take out a home loan with a participating lender

• The Government provides a guarantee to the lender for part of the loan (so LMI which can often cost a borrower $$ thousands is not required)

Important things to know

• Eligibility criteria apply (including requirements around being a first home buyer, property value caps, and other rules)

• You’ll still need to meet the lender’s usual loan approval and repayment requirements

• You’ll still need to pay other costs like legal/conveyancing fees and if applicable, transfer (stamp) duty

Some great benefits

• There are no income caps.

• If you are not a first home buyer but have not owned a home or land in Australia within the last 10 years, you can also apply.

• You can apply on your own or jointly with one other person (partner, friend, or family member) – both of you will need to meet the eligibility criteria.

• For single parents and legal guardians, a minimum 2% deposit applies.

• You can consider a wide choice of home types – house, unit/apartment, off-the-plan, vacant land.

• There are unlimited places and no waiting list.

If you’re interested to investigate further, you should check out www.firsthomebuyers.gov.au (there are other Australian Government schemes that you might like to consider as well) or speak with a broker or participating lender.

How we can help

Buying your first home can feel overwhelming—contracts, cooling-off periods, processes and requirements, and settlement dates can move quickly. We can assist with:

• Reviewing and advising on the Contract for Sale

• Explaining key terms and risks before you sign and exchange

• Helping you understand time frames, requirements, and what to do each step of the way until settlement.

If you’d like assistance with your purchase or want us to review a contract before you sign, we’d love you to get in touch.

This is general information only and does not constitute legal advice. Advice should be sought on your specific circumstances. Information is relevant as at the date of publication.