What is the 5% Deposit Scheme and how does it help first home buyers?

It’s a government backed initiative that helps eligible buyers purchase a home with a smaller deposit — 5% for first home buyers or 2% for single parents/legal guardians — without paying Lenders Mortgage Insurance (LMI). The Government provides a guarantee on part of your loan, helping you buy a home sooner.

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How do I apply for the 5% Deposit Scheme?

You can apply for the Scheme directly with us or through another participating lender as part of your home loan application. One of our Lending Specialists will confirm your eligibility, talk you through your loan options, and help your lodge your application.Once you’re pre‑approved, you can start looking for a property that meets the Scheme’s price caps.

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Who is eligible to apply?

Eligibility includes: first home buyers with a 5% deposit, single parents/legal guardians with a 2% deposit, who are Australian citizens or permanent residents aged 18+. You must intend to live in the home and meet standard lending criteria.

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Are there income requirements to qualify for the Scheme?

No — there are no income caps under the updated Scheme. You’ll still need to show you can comfortably afford your loan repayments. Your Lending Specialist can help you understand what this means for your situation.

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Can I apply with another person?

Yes — you can apply on your own or with one other person, such as a partner, friend or family member. Single parents or single legal guardians must apply on their own to access the 2% deposit option.

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What kinds of properties can I buy under the Scheme?

Eligible properties include houses, townhouses, apartments, house‑and‑land packages, off‑the‑plan homes, and building on vacant land — all within your location’s property price caps.You cannot use the scheme to buy an investment property.

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What is LMI and why don’t I have to pay it?

Lenders Mortgage Insurance (LMI) is normally charged when a buyer has less than a 20% deposit. It protects the lender, not the borrower. Under the Scheme, the Government guarantee replaces the need for LMI — so you don’t pay it.

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Does the Scheme cover other buying costs?

No. Costs like stamp duty, legal fees and building inspections still apply, even if you’re using the Scheme.

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How long do I have to find a property once I’m approved?

Once pre‑approved, you typically have 90 days to find a property and sign a contract.

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Are there limited places in the Scheme or a waitlist?

No. Under the updated Scheme, there are unlimited places and no waitlist. If you’re eligible and meet lending requirements, you can apply at any time.

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