What is the Australian Government 5% Deposit Pathway?

The Scheme is designed to help eligible first home buyers purchase a home sooner, by allowing you to buy with a low deposit of just 2% or 5%, without paying Lenders Mortgage Insurance.

Under the Scheme, the Australian Government guarantees part of your home loan, reducing the upfront costs often associated with buying your first home.

Which pathway are you?

First Home Buyer: Minimum 5% deposit and no LMI

Eligibility: First Home Buyers

To access the Scheme, you need to meet borrower eligibility criteria including: 

  • Australian citizen or permanent resident 
  • Be at least 18 years old 
  • Saved a minimum deposit of 5%
  • A first home buyer or have not 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
  • Planning to live in the home as an owner-occupier (no investment properties) 
  • Applying for an owner-occupier home loan with Principal and Interest repayments, for a term of up to 30 years (Interest only available for up to three years for construction loans). 
  • Applying on your own or jointly with a partner, friend, or family member (maximum of 2 applicants for joint applications)

Please refer to Housing Australia Borrowing Eligibility Tool to help you identify whether you meet the eligibility for this pathway.

Explore the Scheme website

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First Home Buyer: Have not owned property in the last ten years.

Eligibility: First Home Buyers 

To access the Scheme, you need to meet borrower eligibility criteria including: 

  • Australian citizen or permanent resident 
  • Be at least 18 years old 
  • Saved a minimum deposit of 5%
  • A first home buyer or have not 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
  • Planning to live in the home as an owner-occupier (no investment properties) 
  • Applying for an owner-occupier home loan with Principal and Interest repayments, for a term of up to 30 years (Interest only available for up to three years for construction loans). 
  • Applying on your own or jointly with a partner, friend, or family member (maximum of 2 applicants for joint applications)

Please refer to Housing Australia Borrowing Eligibility Tool to help you identify whether you meet the eligibility for this pathway.

 

Explore the Scheme website

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 The Scheme helps single parents or legal guardians who can contribute a minimum 2% deposit to buy a new family home, with a Government guarantee. 

 

Eligibility: Single Parents

To access the Scheme, you need to meet eligibility criteria including: 

  • Australian citizen or permanent resident 
  • Be at least 18 years old 
  • Saved a minimum deposit of 2% 
  • Single parent or single legal guardian of one or more dependent children 
  • 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 
  • Planning to live in the home as an owner-occupier (no investment properties) 

Please refer to Housing Australia Borrowing Eligibility Tool to help you identify whether you meet the eligibility for this pathway.

Explore the Scheme website

Compare home loans

It's easy to get started

Step 1.

Book an appointment with one of our Lending Specialists to explore your options - just a friendly chat at a time that works for you. 

Step 2.

Your Lending Specialist will guide you through the whole process and can help you find what works best for you.

Get Started Today

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A dream rate, benefits and features all packaged together.

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Competitive rates and low ongoing fees with a very low minimum loan amount.

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Value Home Loan

Competitive rate for new borrowers buying a new home, refinancing or investing.

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All Government Grants and Schemes are subject to meeting all eligibility requirements and are subject to change at any time. Some exemptions may apply and are subject to individual circumstances. For more information and full eligibility please visit firsthomebuyers.gov.au. Terms, conditions, fees, charges and lending criteria apply. See Fees & Charges for full details. When considering a home loan, please refer to the home loan product details, terms and conditions and Target Market Determination. Northern Inland Credit Union Ltd | ABN 36 087 650 422 | AFSL & Australian Credit Licence 235022.