Could you buy with a 5% deposit?
Six quick questions covering the things that usually decide whether the scheme is worth pursuing. It takes under a minute and nothing is submitted anywhere. It is indicative only: eligibility is assessed by Housing Australia and by your lender, not by a website.
Indicative only, not advice or an eligibility decision. Eligibility is assessed by Housing Australia and your lender.
What the scheme does, in one line
It lets eligible first home buyers purchase with a smaller deposit than the usual threshold without paying lenders mortgage insurance, because a government guarantee sits behind part of the loan. The detail that decides your case sits in the eligibility criteria and the property price caps, both of which are set by the scheme and change from time to time.
The criteria that actually catch people out
The scheme is a federal government guarantee: an eligible first home buyer purchases with a five per cent deposit and pays no lenders mortgage insurance, because the government guarantees the balance to the lender. The Sydney price cap is $1.5 million and there are no income caps. Places are limited, they attach to a loan application through a participating lender, and not every lender participates, so sequencing eligibility, approval and settlement is the practical work rather than the eligibility test itself.
It commonly pairs with NSW stamp duty relief, and the First Home Owner Grant can be added where the property is an eligible new build. Help to Buy is generally an alternative rather than an addition. Caps and criteria are set by the scheme and change, so Housing Australia is the authority to confirm against, and eligibility is assessed by them and by your lender rather than by this page.
What to do if the checker suggests it might fit
Confirm it properly before you commit to anything. The checker is a filter, not a decision. Scheme places, lender participation and your own eligibility all need verifying, and not every lender participates. That is a short conversation and it is worth having before you start attending inspections at a price the scheme may not support.
Questions about the 5% deposit scheme
Is this an eligibility decision?
No, and it cannot be. Eligibility is assessed by Housing Australia and by the participating lender against verified information. This tool asks the questions that most often determine the answer so you know whether the scheme is worth investigating.
Does every lender offer the scheme?
No. Participation varies, and the lender that suits your income situation may not be a participating lender, or may have its own overlays on top of the scheme criteria. That is one of the things worth checking before you settle on a lender.
Can the scheme be combined with other help?
Sometimes, and the combinations are the part most people get wrong. Some supports stack and some are mutually exclusive. The first home buyer schemes guide covers what can sit together.
What happens to my deposit if I am not eligible?
Nothing changes about your savings. It changes the route in. A smaller deposit without the scheme usually means lenders mortgage insurance, and a guarantor arrangement is a different route again. Both are covered in the low deposit guide.
Does using the scheme cost more in the long run?
You avoid the insurance premium, but you are borrowing more against a smaller deposit, so the loan is larger and the repayment is higher than it would be with a bigger deposit. Whether that trade is worth it depends on your numbers and how long saving longer would actually take.
Related tools and guides
Estimates only, not credit or financial advice. This tool uses general assumptions and cannot see your credit file, verify your income or apply any particular lender's policy. Your position is confirmed in a full assessment.
Find out properly, in twenty minutes.
Charles will confirm whether the scheme fits, which participating lenders suit your income, and what the deposit actually needs to be. Free, no credit check.
