Australian Government 5% Deposit Scheme.

In very simple terms - you meet the eligibility criteria, save a small deposit (minimum 5% for first home buyers or minimum 2% for single parents or legal guardians), go to a Participating Lender (like Beyond Bank) for a home loan that is backed by the Australian Government, buy your home and move in. 

To access the Scheme, you need to meet borrower eligibility criteria. 

First home buyers  

• 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 three years to build a new home) 
• Applying on your own or jointly with one other person (partner, friend, or family member). 

Single parents 

• 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 three years to build a new home) 
• Applying on your own (no joint applications). 

Just a minimum of 5% of your home's value if you're buying your first home (or haven't owned a home or land in Australia in the last 10 years), or 2% if you're a single parent or legal guardian. If you have saved a larger deposit, you may be asked to contribute more than the minimum. 

Note: the property value is assessed by your lender, and it may be different to the purchase price.  

Yes, there are property price caps on the Scheme. The cap depends on where you want to buy.  

Both the purchase price and the home’s value (as assessed by your lender) 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. 

Property price caps are the same for first home buyers and single parents. 

You can use the Postcode Search Tool to find the price cap for your desired location. It’s only a guide – make sure to confirm with your lender for any home you’re considering buying.

Choose a new or existing home to live in - a house, townhouse, apartment, house and land package, off-the-plan purchase, or vacant land with a building contract – it must be in Australia, priced below the location's price cap.

Under the Scheme, you must move into the property within six months of settlement or construction completion, then continue living there while the Guarantee is active.  

If the property has existing tenants, this is permitted as long as you move in within the six-month timeframe.  

If you don’t move in on time, or you move out before the Guarantee ends, this may affect your eligibility. In these cases, your lender may require you to pay Lenders Mortgage Insurance (LMI).  

Please speak with your lender if you have questions about your situation. 

You need to be single (no spouse or de facto partner – if you're separated but not divorced, you're not considered single) and the natural parent, adoptive parent, or legal guardian of one or more dependents. 

A dependent child can be one of the following:  

• a person aged 16 years or older, who lives with you and receives a disability support pension (as defined in the Social Security Act 1991) 
• a “dependent child” (as defined in sections (2), (3), (4), (5), (6), and (7) of Section 5 of the Social Security Act 1991) where:  
  • they are under the age of 16, live with you, and you are legally responsible (part or full-time) for their day-to-day care, welfare and development; or 
  •  they are between 16 and 22 years old, live with you, and are wholly or substantially dependent on you, and their financial year income is no more than $14,370.55 (effective 1 January 2025).

If you are applying as a first home buyer, you can apply on your own or jointly with one other person (a partner, friend, or family member) – both of you need to meet the criteria.  Single parents or legal guardians can only apply as individuals – no joint applications. 

To help you work out which Scheme option (first home buyer or single parent) might suit you: 

• use the Borrower Eligibility Tool for a quick check on the main eligibility criteria 
• book an appointment with a Lending Specialist to talk through your situation.