First Home Buyers

The Australian Government 5% Deposit Scheme helps you buy your first home with a minimum 5% deposit with a Government guarantee. No income caps, no waitlists and no Lenders Mortgage Insurance (LMI) – which is usually payable for any loan where the deposit is under 20% of the loan value – means you have lower upfront costs and could own your first home sooner.

Eligible borrowers can use the Scheme in conjunction with other government programs like the First Home Super Save Scheme, and relevant state and territory first home owner grants and stamp duty exemptions (find out more about those here).

How does the Scheme work?

Home buyers usually need a deposit of 20% of the Property Value to get a home loan, and those with a smaller deposit may require Lenders Mortgage Insurance.

Under the Scheme, Housing Australia provides a Guarantee to the lender, so home buyers only need a 2% or 5% deposit depending on the type of Guarantee. This helps home buyers to buy a home sooner, with lower upfront costs.  

If you’re an eligible first home buyer, the minimum deposit required is 5% of the property value.

What type of home can I buy?

For a property to be eligible it must be a residential property. Eligible residential properties generally include:

• an existing house, townhouse or apartment
• a house and land package
• land and separate contract to build a home
• an off-the-plan apartment or townhouse.

Where can I buy my home and for how much?

The Australian Government 5% Deposit Scheme gives you the flexibility to choose the type of home that suits your lifestyle, location and budget, right across Australia.

Both the purchase price and the home’s value (as assessed by IMB, or your participating lender) must stay at or below the cap. For building a new home on vacant land with separate contracts, the total land price plus build costs need to come in under the cap too.

Check the Postcode Search Tool to find the price cap for your desired location. It’s only a guide – so confirm with us any home you’re considering buying.

Property price caps are the same for first home buyers and single parents.

*Regional centres are (1) in New South Wales - Illawarra, Newcastle and Lake Macquarie, (2) in Victoria - Geelong, and (3) in Queensland - Gold Coast and Sunshine Coast.

Eligibility criteria

Home buyers need to meet a range of eligibility criteria to access the Scheme. These include:

• Citizenship – be an Australian citizen(s) or permanent resident(s)
• Deposit – minimum 5% of the Property Value
• Property ownership - must be a first home buyer or not have owned a property in Australia in the last 10 years prior to the date you execute your home loan* (applies to both in a joint application)
• Owner-occupier – you must buy or build a home to live in (investment properties are not eligible)
• Loan type – owner-occupier loan with Principal and Interest repayments, with a maximum loan term of 30 years
• Applicant type –Individuals or buying with one partner, friend or family member
• Minimum age – must be at least 18 years old
• Purchase property - Your purchased property must be an acceptable property type and within the property price threshold for the suburb and postcode.

How do I apply for the Scheme?

Check your eligibility

The section titled "Eligibility Criteria" above details the main eligibility criteria.

Get in touch

with us Book an appointment online, by calling 133 462, or at your local IMB branch.

Submit your home loan application

Once you have received conditional approval from IMB, we will collect the documents required for eligibility and reserve your Guarantee.

Buy a home

You now have 90 days to purchase your first home.

‍Fact sheets and information guides

For complete information on eligibility, property types and more, click on the information guide links below or head to housingaustralia.gov.au.

• Scheme Fact Sheet
• First Home Buyer Information Guide