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Australian Government 5% Deposit Scheme
Own your first home sooner with support from the Australian Government
Saving for a deposit can feel like the biggest barrier to home ownership — especially when prices are rising faster than savings can keep up.
The Australian Government 5% Deposit Scheme (part of the Home Guarantee Scheme) helps eligible home buyers purchase a home sooner, with a deposit as low as 5% for first-home buyers, or 2% for eligible single parents and guardians.
Instead of needing a full 20% deposit, the Government guarantees part of your home loan to a participating lender, allowing you to avoid paying Lenders Mortgage Insurance (LMI) and save thousands upfront.
How the Scheme Works
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You save at least 5% (for first-home buyers) or 2% (for single parents or legal guardians) of your property’s value.
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The Australian Government provides a guarantee to your participating lender for up to 15–18% of the property value.
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This allows your lender to approve your loan without Lenders Mortgage Insurance (LMI), helping you get into your home sooner.
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You’ll make regular home loan repayments just like any other borrower.
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The property you buy must be for you to live in, and it must be under the price caps for your state or region.
At Henley Home Loans, we’ll guide you through the process, confirm your eligibility, and compare participating lenders to find a solution that fits your goals and budget.
Who Can Apply
The Scheme supports two main groups of buyers:
First Home Buyers
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Australian citizens or permanent residents aged 18+
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Have not owned a property in the past 10 years
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Have saved at least 5% deposit
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Plan to live in the property
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Stay within the property price caps for your area
Single Parents or Legal Guardians
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Australian citizens or permanent residents aged 18+
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Have at least one dependent child
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Have saved at least 2% deposit
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Be the sole applicant
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Plan to live in the property (no investment properties)
For complete eligibility details, visit the official Government website:
👉 housingaustralia.gov.au/support-buying-home/home-guarantee-scheme
Talk to a broker today
Property Price Caps (Effective 1 October 2025)
Both First Home Buyers and Single Parents/Guardians must purchase a home that falls under their region’s property price cap.
These limits vary depending on the state and location:
| Location | Property Price Cap |
|---|---|
| NSW – Capital city & regional centres | $1,500,000 |
| NSW – Other | $800,000 |
| VIC – Capital city & regional centres | $950,000 |
| VIC – Other | $650,000 |
| QLD – Capital city & regional centres | $1,000,000 |
| QLD – Other | $700,000 |
| WA – Capital city | $850,000 |
| WA – Other | $600,000 |
| SA – Capital city (Adelaide) | $900,000 |
| SA – Other | $500,000 |
| TAS – Capital city | $700,000 |
| TAS – Other | $550,000 |
| ACT | $1,000,000 |
| NT | $600,000 |
| Jervis Bay Territory & Norfolk Island | $550,000 |
| Christmas Island & Cocos (Keeling) Islands | $400,000 |
Regional centres include: Illawarra, Newcastle, and Lake Macquarie (NSW); Geelong (VIC); and the Gold Coast and Sunshine Coast (QLD).
Helpful Tools
You can explore these resources to see how the scheme could work for you:
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Government Postcode Price Cap Tool – Check price limits in your area
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Eligibility Tool – Find out if you qualify
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Home Loan Repayment Calculator – Estimate your repayments
How Henley Home Loans can help
At Henley Home Loans, our brokers work for you to compare over 40 lenders and help you:
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Assess your eligibility for the scheme
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Compare home loan options across multiple lenders
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Prepare your documents and lodge your application
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Guide you through each step from pre-approval to settlement
We make it simple, transparent, and personal — so you can move into your first home with confidence.
Next steps
1️⃣ Book your free chat — talk to a local broker about your goals.
2️⃣ Check your eligibility for the First Home Guarantee.
3️⃣ Get pre-approved and start house-hunting with confidence.
Disclaimer
Any advice contained in this page is of a general nature only and does not take into account the objectives, financial situation, or needs of any particular person. Before making any decision, you should consider the appropriateness of the advice with regard to your personal circumstances. Information is current as of October 2025 and may change without notice.
For full details, visit Housing Australia
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