The Australian Government 5% Deposit Scheme (previously known as the Home Guarantee Scheme) is a game-changer for eligible home-buyers looking to secure their first home. Managed by Housing Australia on behalf of the government, the scheme is designed to help people purchase their homes sooner by offering significant financial support.
The scheme allows eligible first-home buyers to purchase a property with as little as a 5% deposit. For single parents or legal guardians, the deposit requirement is even lower—just 2%. And the best part? You don’t have to pay Lenders Mortgage Insurance (LMI), which can otherwise add thousands of dollars to your home loan.
It’s important to note that the Scheme is not a cash payment or a direct deposit towards your home loan. Instead, it’s a government guarantee that reduces the lender’s risk, allowing you to secure your loan with a smaller deposit. For the full fact sheet please click here
While the scheme offers fantastic benefits, there are still eligibility criteria that need to be met. To see if you qualify and to learn more about how the scheme could assist you in your home-buying journey, book an appointment today with one of our experienced consultants:
*Jarrod Flanagan and Martin Smith are credit representatives of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237).
