Buy your first home with a 5% deposit
The Australian Government’s 5% Deposit Scheme (the First Home Guarantee) lets eligible first home buyers purchase with as little as 5% down and no lenders mortgage insurance. Your broker checks your eligibility and finds a participating lender.
- No lenders mortgage insurance
- No income cap
- Unlimited places
Less to save, sooner in your own place
Normally, borrowing more than 80% of a property’s value means paying lenders mortgage insurance (LMI), which can add thousands of dollars to your loan. Under the scheme, the government guarantees part of your loan to a participating lender, so you can buy with a 5% deposit and skip LMI.
You still need to meet the lender’s normal lending criteria, so your income, expenses and credit history need to support the loan. Your broker will check this before you start house hunting.
Example: a $700,000 first home
- 20% deposit (to avoid LMI normally)
- $140,000
- 5% deposit under the scheme
- $35,000
- Less to save up front
- $105,000
Illustration only. You’ll also need money for costs such as stamp duty (unless exempt), legal fees and inspections.
How much the home can cost
The property price must be at or under the cap for its location. Caps in other regional areas and in the Northern Territory are lower and differ by area.
Check the exact cap for a postcode with Housing Australia, which runs the scheme, or ask your broker.
| Capital city area | Price cap |
|---|---|
| Sydney and NSW regional centres | $1,500,000 |
| Melbourne and Geelong | $950,000 |
| Brisbane, Gold Coast and Sunshine Coast | $1,000,000 |
| Perth | $850,000 |
| Adelaide | $900,000 |
| Hobart | $700,000 |
| Canberra (ACT) | $1,000,000 |
Who’s eligible
- Australian citizen or permanent resident
- At least 18 years old
- Buying on your own or with one other person
- You haven’t owned property in Australia in the past 10 years
- You’ll live in the home (owner-occupier)
- You have at least a 5% deposit (2% for the Family Home Guarantee)
Other help worth knowing about
- Stamp duty concessions: many states cut or waive duty for first home buyers. See stamp duty and grants by state or try our stamp duty calculator.
- First Home Owner Grants: most states offer a grant for new homes. Amounts and rules vary by state.
- First Home Super Saver scheme: save part of your deposit inside super and withdraw up to $50,000 of voluntary contributions.
- Help to Buy: a government shared-equity scheme with its own income and price limits.
- Family Home Guarantee: eligible single parents and guardians can buy with a 2% deposit.
From saving to settled
Check eligibility
A quick chat confirms whether the scheme, grants and duty concessions apply to you.
Get pre-approved
We find a participating lender and get a conditional pre-approval so you know your budget.
Find your home
Shop within the price cap for your area. We’re on hand when you’re ready to make an offer.
Settle and move in
We handle the lender and paperwork through to settlement day.
First home buyer questions
Do I have to use a particular lender?
Yes. The scheme is only available through participating lenders, which include major banks and a range of smaller lenders. Your broker knows which ones take part.
Is there still an income limit?
No. Income caps for the First Home Guarantee were removed from 1 October 2025, and places are no longer limited. You still need to pass the lender’s normal assessment.
Can I buy an investment property under the scheme?
No. You must live in the home. If you move out, the guarantee may stop and the lender could ask you to pay LMI.
Does a 5% deposit mean a bigger loan?
Yes. Borrowing 95% means higher repayments and more interest over the loan than with a bigger deposit. Your broker will show you both side by side.
Can I combine it with stamp duty concessions and grants?
Often, yes. Many buyers combine the guarantee with their state’s first home duty concession or grant. Eligibility depends on your state and the property.
Mortgage brokers are legally required to act in your best interests when helping with a home loan, and to put your interests first if there’s a conflict.
Useful calculators
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Ready to buy your first home?
Find out what you could borrow and whether you qualify for the 5% Deposit Scheme. Comparing options won’t affect your credit score.