ABOUT
What is the Australian Government
5% Deposit Scheme?
The Australian Government 5% Deposit Scheme makes home ownership more achievable by helping you buy sooner with a small deposit, supported by a Government guarantee.

How does the Scheme work?
Part of the home loan for eligible first home buyers or single parent home buyers will be guaranteed by Housing Australia.
This is aimed at enabling eligible home buyers to purchase their first home sooner with lower deposits. In doing so eligible buyers can avoid paying for Lender’s Mortgage Insurance premiums usually required for smaller deposit levels.
Who can apply for the Scheme?
All first home applicants must meet the following criteria:
- An Australian permanent resident
- A prior property ownership test
- A minimum age test
- Any deposit requirements
- An owner-occupier requirement
- First home buyer applicants include those who have not owned a property in Australia in the last 10 years & can be two applicants that are friends, siblings or any other family member (in addition to single applications).
- Single parent applicants must pass an eligible single or adoptive parent test or single legal guardians of at least one dependent.
You can find out more about eligibility requirements for the guarantee, including unique criteria within the scheme and updated property price caps, by visiting the Housing Australia website.


Why is this great news for you?
To purchase a home, you would normally need to save at least 20% of the property’s value to avoid having to pay for Lender’s Mortgage Insurance (LMI) premiums or rely on a guarantor. With the Australian Government 5% Deposit Scheme, the Government provides a Guarantee to Participating Lenders, which enables eligible first or family home buyers the opportunity to buy a home sooner, with a smaller deposit and without paying LMI.
Ready to apply for a Home Loan?
Important Information
Terms and conditions apply and are available on request. Fees, charges and lending criteria apply. A Financial Services Guide (FSG) is available here, at all Branches, on our website and upon request. The interest rate and comparison rate are current and are subject to change. Unless stated, all comparison rates are based on principal and interest repayments. For more information on interest only comparison rates, please contact us. The ‘Police Bank – First Home Loan’ is only available for applicants that qualify for the Australian Government 5% Deposit Scheme. Construction financing is limited to interest only repayment structures.* The comparison rate is based on a loan of $150,000 over a 25-year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. # Offset Account is not available on Interest Only or Fixed Loans.^ Housing Australia’s participation in the scheme varies dependent on whether you are a first home buyer or single parent applicant.