Australian Government 5% Deposit Scheme

The Australian Government’s First Home Guarantee (FHBG)—often called the 5% deposit scheme—was designed to help first home buyers enter the market faster. Instead of needing a full 20% deposit, eligible buyers can purchase a home with just 5%, without paying Lenders Mortgage Insurance (LMI).

This can save you thousands and bring your timeline forward by years.

But the scheme is limited each financial year, lender rules vary widely, and approvals can be quite complex — which is where having a broker makes a huge difference.

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How the 5% Deposit Scheme Helps You

• Buy with a much smaller deposit

• Avoid the expensive LMI cost

• Enter the market sooner instead of waiting to save 20%

• Access lenders who participate in the scheme

• Potentially increase your borrowing options

The government essentially steps in as a guarantor for part of your loan, allowing the bank to lend with a lower deposit while keeping costs down.

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What the Scheme Covers

The scheme can be used for several types of purchases, including:

• Established homes

• New builds or house & land packages

• Off-the-plan apartments

• Land + construction loans

There are property price caps and specific lending requirements that apply across different states and regions.

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Why It Helps to Have a Broker

While the scheme sounds simple, the eligibility rules and lender policies are not. Every lender treats the scheme differently — from income types to savings requirements to construction rules.

This is why most first home buyers come to me to:

• Confirm whether they’re eligible

• See which lenders have available scheme places

• Compare interest rates and fees

• Understand how the scheme affects their borrowing capacity

• Structure their loan correctly so they don’t get declined or delayed

I’ll walk you through everything from checking eligibility to submitting the application, giving you the best chance of securing a place before they run out.

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Want to Know If You Qualify?

Instead of guessing or spending hours researching, I can check your situation and let you know quickly if:

• You meet the government requirements

• Your preferred lender participates in the scheme

• You have enough deposit

• Your income and current financial setup fit the guidelines

Most people are surprised at how achievable the scheme actually is once we break everything down.

 

📩 Click here to request an eligibility check