What is the Australian Government 5% Deposit Scheme?
The Australian Government 5% Deposit Scheme (the Scheme) helps you buy your first home with a minimum 5% deposit with a Government guarantee. No income caps, no waitlists and no LMI means you have lower upfront costs and could own your first home sooner.
People First Bank is a participating lender offering the Scheme . This scheme is available when you apply directly with People First Bank, either online or in-branch. If you're interested in applying please register your interest below or speak with our Home Loan Specialists to discuss the options available to you.
Key Scheme features:
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Low deposit options
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No income cap
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No Lenders Mortgage Insurance (LMI)
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Wide choice of home types
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Government-backed support: A Government guarantee is provided to the lender for your loan
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Unlimited spots and no waiting lists
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Purchase a property up to the property price caps set by the Scheme for your location
Who is eligible for the Australian Government 5% Deposit Scheme?
To be eligible, you need to meet the following criteria:
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Have a minimum 5% deposit
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Buying a home in Australia priced at or below the location's price cap
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Be Australian citizens or permanent residents
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Be applying as individual or joint applicants, which may include partners, friends, siblings, and other family members
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Planning to live in the home as an owner-occupier (no investment properties)
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Be first home buyers or previous home owners who haven't owned a property in the ten years prior to the date they execute their home loan. Prior property ownership includes a freehold interest in real property in Australia (this includes owning land only), an interest in a lease of land in Australia with a term of 50 years or more, or a company title interest in land in Australia.
FAQs
The Australian Government 5% Deposit Scheme is designed to support eligible home buyers to enter the housing market sooner. It does this by allowing Housing Australia to issue guarantees for eligible loans to home buyers with a deposit of between 5 and 20% of the property value.
If you're interested in applying for the scheme, contact us directly by registering your interest via the form below or speak with one of our Home Loan Advisers.
The Scheme exists to assist eligible first home buyers to purchase a home sooner. It does this by providing a guarantee to participating lenders that will allow eligible first home buyers to purchase a home with a deposit of as little as 5%, and the additional benefit of not having to save for Lenders Mortgage Insurance (LMI).
You can check your eligibility on the Australian Government First Home Buyers website.
Visit the Australian Government First Home Buyers website to use the Property Price Cap Tool – a postcode search tool to help home buyers determine the property price caps for the suburb they are purchasing in.
No. The Australian Government 5% Deposit Scheme allows eligible home buyers with deposits as low as 5% to get a home loan without paying Lenders Mortgage Insurance (LMI) fees.
Maximum purchase prices (property price caps set by Government legislation) are applicable for eligible properties purchased under the Scheme. You can find them on the Australian Government First Home Buyers website.
- Completed and signed application form – including signed privacy declaration;
- Needs Analysis;
- Verification of income and expenses – payslips etc;
- Evidence of 5% genuine savings;
- Evidence of funds to complete the transaction – savings plan/gift from family;
- Signed Home Buyer Declaration (Statutory Declaration) – People First Bank will provide this to you.
Single parent?
Are you a single parent? Find out how the Australian Government 5% Deposit Scheme can help you.
