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Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme, previously known as the Home Guarantee Scheme, is a federal government backed scheme, where the government will guarantee your home loan, and you would not pay a mortgage insurance fee if you are an eligible first home buyer or you haven't owned a property for more than 10 years.
The Australian Government 5% Deposit Scheme means an eligible first home buyer or people who haven't owned a property for more than 10 years, may be able to borrow up to 95% of the property value, and not pay a mortgage insurance fee, as the federal government will guarantee the home loan for the bank. The Australian Government 5% Deposit Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC).
If you are an eligible first home buyer or haven't owned a property for more than 10 years, the home guarantee means you might able to purchase your home with less deposit, and not pay a mortgage insurance fee.
There are unlimited Australian Government 5% Deposit Scheme places available across Australia in the 2025/2026 financial year. The scheme is available for both buying an existing home or if you would like to build your first home. Please note there are conditions to the Australian Government 5% Deposit Scheme, so please contact your mortgage broker, before you enter into any property transactions, to check your eligibility.
Please note too, if you are eligible for the Australian Government 5% Deposit Scheme, you may still be eligible for the first home owners grant in Western Australia too, so it is worth checking with your mortgage broker, to see what you might be eligible for, before making any decisions.
Some of the conditions of the Australian Government 5% Deposit Scheme -
- You must be an Australian Citizen or a permanent resident of Australia ( Permanent resident has the same meaning as in the Australian Citizenship Act 2007 (Cth),)
- There are no maximum income limit restrictions with the new Australian Government 5% Deposit Scheme.
- The property you buy must be owner occupied ( You must live in the property), whilst the government guarantee is in place.
- You must be a first home buyer or a previous home owner who hasn't owned a property in Australia in the last 10 years.
- Be at least 18 years of age
There are maximum purchases prices based on location in Western Australia, they are -
1/ In a capital city (Perth) - $850,000
2/ In other parts of the state in Western Australia - $600,000
Not all banks or lenders are participating in the Australian Government 5% Deposit Scheme, so if you have any questions contact your mortgage broker to find which lenders or banks are participating in the scheme.
If you would like some more information about the Australian Government 5% Deposit Scheme, please contact Perth Mortgage Broker Group , or call Troy on 0411 229 602, 7 days a week
