Australian Government 5% Deposit Scheme
Defence Bank is right behind the Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme is for aspiring home buyers – first home buyers with a minimum 5% deposit, or single parents with a minimum of 2%.
Scheme Places
There are unlimited places available under the Australian Government 5% Deposit Scheme from 1 October 2025.
Who can access the Scheme?
- You’re a first home buyer with a minimum 5% deposit
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You’re a single parent or legal guardian with a minimum 2% deposit
Scheme Features
What are the Scheme features?
- Low deposit options
- No income caps
- No Lenders Mortgage Insurance (LMI)
- Wide choice of home types
- Government-backed support: A Government guarantee is provided to the lender for your loan
- Unlimited spots and no waiting lists
- Purchase a property up to the property price caps set by the Scheme for your location
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 LMI means you have lower upfront costs and could own your first home sooner.
Borrower eligibility
To access the Scheme, you need to meet borrower eligibility criteria including:
- Australian citizen or permanent resident, 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 from a Participating Lender, up to 30 years (plus up to 3 years to build a new home)
- Applying on your own or jointly (max 2 applicants) with a partner, friend, or family member.
Single Parents
The Australian Government 5% Deposit Scheme helps single parents or legal guardians who have saved a minimum 2% deposit to buy a new family home with a Government guarantee.
Borrower eligibility
To access the Scheme, you need to meet borrower eligibility criteria including:
- Australian citizen or permanent resident, 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)
- Applying for an owner-occupier home loan with Principal and Interest repayments from a Participating Lender, up to 30 years (plus up to 3 years to build a new home)
- Applying on your own (no joint applications)
First Home Buyers and Single Parents
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 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.
Property price caps are the same for first home buyers and single parents.
Does the Scheme work with DHOAS?
The Scheme applies to Defence Bank’s competitive range of home loans, including the Defence Home Ownership Assistance Scheme (DHOAS) home loans.
From Wagga to Townsville, we're helping Australians own their first home.
