Australian Government 5% Deposit Scheme

The 5% Deposit Scheme helps you get into your first home sooner, with a smaller deposit and no Lenders Mortgage Insurance (LMI).

No LMI required for eligible home loans with under 20% deposit.

There are no limits to your income when applying.

You loan is supported by an Australian Government guarantee.

You don’t have to wait, apply whenever you are ready.

Own your first home with as little as 5% deposit

Feel like it’s time for a home of your own? Saving for your first home doesn’t have to be so far away. Being part of the Australian Government 5% Deposit Scheme, we help eligible first home buyers take that first step sooner with a smaller deposit. The Government guarantees part of your loan, so you can borrow with a much smaller deposit and skip the Lenders Mortgage Insurance (LMI) costs completely.

  • When buying your first home you’ll need a minimum of 5% deposit saved. You can apply on your own, or with a partner, friend, or family member.

  • For single parents a minimum of 2% deposit is needed. This one is for single parents or legal guardians with at least one dependent child.

How it works

Smaller deposit

Buy sooner with a minimum of 5% deposit – you need only a 5% deposit (or 2% for single parents/guardians), rather than the usual 20%.

No LMI

Keep more money in your pocket – you won’t need to pay Lenders Mortgage Insurance, saving thousands in upfront costs.

Government guarantee

The government bridges the gap by providing a guarantee to the lender for your loan, so you could borrow up to 95-98% of your home’s value.

Am I eligible?

For first home buyers

  • You are an Australian citizen or permanent resident, at least 18 years old

  • You are planning to live in the home as an owner-occupier (no investment properties)

  • It’s your first home – you are a first home buyer or haven’t owned a property or land in Australia in the last 10 years

  • Buying a home in Australia priced at or below the location’s price cap

  • You’ve got saved a minimum deposit of 5%

  • Applying on your own or jointly with one another person (partner, friend, or family member)

  • Applying for an owner-occupier home loan with Principal and Interest repayments from a Participating Lender, up to 30 years (plus up to three years to build a new home). Subject to Dnister’s lending and credit approval criteria.

For single parents

  • You are an Australian citizen or permanent resident, at least 18 years old

  • You’ve got saved a minimum deposit of 2%

  • You are a single parent or single legal guardian of one or more dependent children

  • You do not have any other property interest once your new home settles

  • Buying a home in Australia priced at or below the location’s price cap

  • You are planning to live in the home as an owner-occupier (no investment properties)

  • Applying on your own (no joint applications)

  • Applying for an owner-occupier home loan with Principal and Interest repayments from a Participating Lender, up to 30 years (plus up to three years to build a new home). Subject to Dnister’s lending and credit approval criteria.

Check eligibility

Speak to us

To apply for the Australian Government 5% Deposit Scheme, speak to one of our Lending Specialists, who can meet you in-person or over a phone or video call.

Useful tools

Eligibility checker

Official government tool to see if you are eligible.

Check eligibility

Price cap lookup

Find the property price cap for the suburb you are purchasing in using a postcode.

Search postcode

Repayment calculator

Check what your repayments might be using our Home Loan Key Fact Sheet tool.

Use calculator

First Home Buyers Guide

 

Download the guide

Scheme Fact Sheet

 

Download the fact sheet

Single Parents Guide

 

Download the guide

Why Dnister

We speak your language

 Talk to our team in української. Ми прагнемо зробити банкінг людяним та простим, розуміючи ваші потреби по-справжньому і даючи можливість відчути себе серед своїх. Зв’яжіться з нами.

Lending that understands you

We offer flexible lending options designed around our community. For example, our Newcomers Package allows eligible applicants who have been in Australia for less than five years to apply with as little as three months of employment and more.

A dedicated specialist

You will have one Lending Specialist to guide you through every stage of your home loan, support and answer any questions.

Member owned

Instead of paying dividends to external shareholders (like big banks do), we reinvest our profit back into better rates for you, lower fees, and funding programs to support Ukrainian, Latvian and broader communities.

Ready to get started? 

Apply and buy your dream home in a few simple steps:

1. Check your eligibility.

2. Get in touch with our Lending Specialist to guide you through eligibility criteria, loan options and help you submit your application. Provide required documents and completed Home Buyer Declaration form.

3. Search for a home once you get your pre-approval.

4. Buy your home and move in! Once settlement is completed, move in your own home within 6 months.

 

Frequently Asked Questions

 

Normally, if you don’t have a 20% deposit saved, you are required to pay Lenders Mortgage Insurance to cover lender’s risk. With the 5% Deposit Scheme, the Government steps in and guarantees part of your loan instead (up to 15% of the property’s value). That’s what allows a lender approve you with just a 5% deposit, without charging you LMI. 

Yes, there is a price cap, and it changes depending on where you’re buying. Capital cities generally have a higher cap than regional areas, and the exact number is reviewed periodically, so it’s worth checking the current figure for your specific postcode via the Postcode Search tool. 

We accept joint applications for couples (married or de facto), also if you are looking to buy with a friend, a parent or sibling. Everyone on the application needs to individually meet the eligibility rules. Each application is assessed individually. Talk to our Lending Specialist if you would like to know more.

You will have 90 days to find a property to buy and sign a Contact of sale. After 90 days your pre-approval will expire and your application will need to be reassessed to get a new pre-approval.

The 5% Deposit Scheme is designed for people planning to buy their first home and live in it. For this reason all eligible applicants are required to move in within 6 months from settlement with a few exemptions.

To be eligible for the 5% Deposit Scheme as a first home buyer you must not have owned any properties in Australia including vacant land for at least last 10 years. For single parents the eligibility criteria are different.

General Advice Warning: In providing you with this information, you should consider the appropriateness of this product or service with regard to your particular financial situation and needs. We advise that you carefully read the respective Product Disclosure Statement and associated Disclosure Documents before acquiring a product.