Australian Government 5% Deposit Scheme Overview

Get into your first home sooner with the Australian Government 5% Deposit Scheme

The Scheme is designed to make home ownership more accessible for eligible buyers. With as little as a 5% deposit for first home buyers or a 2% deposit for single parents and legal guardians, you can secure your new home without the need for Lenders Mortgage Insurance (LMI).

With no income caps, no waitlists, and significantly reduced upfront costs, the Scheme helps you move into a property that suits your lifestyle, budget, and location — whether that’s a city apartment, a family home, or even building on vacant land.

At Rosh Partners, we’ll guide you through the process and ensure you make the most of this opportunity to step into home ownership sooner.

Key benefits of the First Home Guarantee

  • Low Deposit Options – Buy your first home with as little as a 5% deposit. Save years on your deposit journey and step into the market sooner.

  • No Income Limits – Your earning capacity won’t restrict your eligibility, making the Scheme accessible to more Australians.

  • Avoid Extra Costs – No Lenders Mortgage Insurance (LMI), saving you thousands upfront and freeing up funds for your new home.

  • Flexibility in Property Choice – Eligible properties include houses, townhouses, apartments, house-and-land packages, off-the-plan purchases, and building on vacant land (subject to regional price caps).

  • Government-Backed Support – A Government guarantee is provided directly to the lender, helping make home ownership more achievable.

  • Unlimited Places, No Waitlist – Apply when the time is right for you — with no waiting lists or limited allocations.


Property Price Caps

Maximum property price caps apply and vary depending on the location of the property. Both the purchase price and property value must fall within the relevant price cap. For new builds where land is purchased separately and a construction contract is entered into, the combined cost of the land and build must not exceed the cap. The property value is determined by the lender’s assessment which, may differ from the purchase price.

Property Price Caps – Australian Government 5% Deposit Scheme


What type of home can you buy?

  • Existing house, townhouse or apartment

  • House and land package

  • Vacant land with separate contract to build a home

  • Off-the-plan apartment or townhouse

Are you Eligible?

To qualify for the Scheme, you’ll need to meet the following requirements:

  • Residency – You must be an Australian citizen or permanent resident, aged 18 or over.

  • Deposit – A minimum deposit of 5% is required.

  • First Home Buyer – You must be purchasing your first home, or not have owned property or land in Australia within the past 10 years.

  • Property Price Cap – The home you’re buying must be located in Australia and fall within the price cap for its region.

  • Owner-Occupier – The property must be your primary residence. Investment properties are not eligible.

  • Loan Type – You’ll need to apply for an owner-occupier home loan with Principal and Interest repayments with terms of up to 30 years (plus an additional three years if building a new home).

  • Applicants – You can apply as an individual or jointly with one other person (such as a partner, friend, or family member).

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Get in contact with us today

Alan Harrosh 0422 264 558
Mark Harrosh  0407 877 115
Campbell Morrow  0431 260 055

1300 671 801 (Chadstone Office)
admin@roshpartners.com.au

 

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Frequently Asked Questions

  • Getting your finance pre-approved before you make any decisions is always a very good idea. While not strictly required, getting a home loan pre-approval can be highly beneficial, especially in a competitive housing market. Here’s why:

    1. Know Your Budget

    • A pre-approval provides you with a clear understanding of how much you can borrow based on your financial situation. This helps you focus your property search within your price range, saving time and preventing disappointment.

    2. Strengthen Your Position as a Buyer

    • Pre-approval shows sellers and real estate agents that you're a serious buyer with financing already conditionally secured. This can make your offer more attractive and give you an edge over buyers who haven’t been pre-approved.

    3. Avoid Surprises

    • During the pre-approval process, your lender will assess your financials (income, savings, credit history) to give you an accurate borrowing estimate. This way, you can address any issues or discrepancies early on, reducing the chance of surprises later.

    4. Faster Loan Approval

    • Having pre-approval can speed up the loan approval process once you’ve found the right property. Since much of the groundwork is already done, the final approval can be quicker and smoother, which is especially helpful when dealing with tight settlement timelines.

    5. No Obligation

    • A pre-approval is typically valid for 3-6 months, and while it gives you a better idea of your borrowing power, you're not locked into a particular lender or loan until you proceed with a formal application. This gives you flexibility if your circumstances change.

    When Might You Not Need Pre-Approval?

    • In certain situations, such as if you're making an unconditional cash offer or if you’re a returning buyer with extensive equity, pre-approval may not be essential. However, even in these cases, knowing your borrowing capacity is still helpful.

    Final Thoughts: While it’s not mandatory, getting pre-approval can provide peace of mind, clarity, and a competitive edge when buying a home. It’s a smart step in the home-buying process, especially if you’re serious about securing your next property. A mortgage broker can guide you through the pre-approval process and help you find the best loan options based on your needs.

  • Eligible properties include established homes, townhouses, apartments, and house-and-land packages (subject to price caps by location). For new builds, both the land and construction costs must fall under the relevant price cap.

  • Property price caps vary depending on the state and whether the property is located in a capital city, regional centre, or other area. For example, the cap in Melbourne and regional centres is $950,000, while other areas caps at $650,000.

Why clients ❤︎ Rosh Partners