Buy your home sooner with a smaller deposit
5
2
Local Lending Experts
here to guide you
Support Through The Process
from enquiry to settlement
Customer Owned Bank
focussed on members
What is 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/guardians with a minimum 2% deposit.
The Scheme helps you buy sooner with a smaller deposit, supported by a Government guarantee provided to the lender.
There are unlimited places available under the Scheme from 1 October 2025.
How The Scheme Works
Check your eligibility
You must meet the Scheme’s borrower eligibility criteria.
Save your minimum deposit
5% for first home buyers, 2% for single parents or legal guardians.
Apply with a participating lender
Submit your home loan application with a bank authorised to offer the Scheme.
Government guarantee arranged
Provided you meet the criteria, the Australian Government will provide a guarantee to your bank to support the loan.
Buy and move in
Purchase an eligible property within the Price Cap and settle into your new home.
Who can access the scheme?
First Home Buyers
The Australian Government 5% Deposit Scheme helps first home buyers who can contribute a minimum 5% deposit, with a Government guarantee.
To be eligible, you must:
- Be an Australian citizen or permanent resident
- Be at least 18 years old
- Have saved a minimum 5% deposit
- Be a first home buyer (or not have owned property in Australia in the last 10 years)
- Live in the home as an owner-occupier
- Apply for a Principal and Interest home loan
- Meet Cairns Bank lending criteria
Joint applications (maximum of two applicants) are permitted.
Single Parents or Legal Guardians
The Australian Government 5% Deposit Scheme helps single parents or legal guardians with a minimum 2% deposit to buy a new home, with a Government guarantee.
To be eligible, you must:
- Be an Australian citizen or permanent resident
- Be at least 18 years old
- Have saved a minimum 2% deposit
- Be a single parent or single legal guardian of one or more dependent children
- Not have any other property interest once your new home settles
- Live in the home as an owner-occupier
- Apply on your own (no joint applications)
- Meet Cairns Bank lending criteria
Property Price Caps Apply
Under the First Home Guarantee, both the purchase price and the property value (as assessed by your lender) must not exceed the applicable price cap for the location of the property.
Price caps vary by state and region across Australia. Our team can help you confirm whether your intended purchase price meets the relevant threshold, or you can check the Government postcode search tool to view the price cap for your chosen location.
Cairns Bank can assist eligible property purchases anywhere in Australia under the First Home Guarantee.
Why eligible buyers consider the Scheme
- Low deposit options
- No income caps
- Avoid Lenders Mortgage Insurance (LMI), reducing upfront costs
- Wide choice of eligible home types
- Unlimited places and no waiting lists
- Government-backed support
Important: You are still responsible for repaying the full loan amount, including principal and interest.
Why Cairns Bank?
As your local lender, we’re here to guide you through the process from start to finish.
Our home loan specialists can:
- Explain how the Scheme works
- Help assess your eligibility
- Guide you through documentation
- Support you with your home loan application
We are your local experts and we’re here to help.
Got questions? We've got answers
What is the minimum deposit required?
Eligible first home buyers must have saved a minimum 5% deposit of the property purchase price.
Eligible single parents or legal guardians must have saved a minimum 2% deposit.
You must also meet government eligibility requirements and Cairns Bank lending criteria.
Are there income limits?
There are no income caps under the Australian Government 5% Deposit Scheme.
However, you must still meet Cairns Bank’s lending criteria, including our credit and serviceability assessment.
Can I buy an existing home?
Yes. Eligible applicants may purchase an existing house, townhouse or apartment, provided the property:
Is located in Australia
Is priced at or below the applicable Property Price Cap
Will be lived in as your owner-occupied home
All purchases remain subject to eligibility and lending criteria.
Can I build?
Yes. The Scheme may apply to building a new home, including:
Vacant land with a separate building contract
House and land packages
For separate land and build contracts, the total land price plus build costs must be within the applicable Property Price Cap.
All applications are subject to eligibility and lending criteria.
Do I still need to meet lending criteria?
Yes. All home loan applications are subject to Cairns Bank’s lending criteria, including credit and serviceability assessment.
The Australian Government guarantee supports the lender — you remain responsible for repaying the full loan amount (principal and interest).
Are fees and charges applicable?
Yes. Terms, conditions, fees and charges may apply.
While eligible applicants may avoid paying Lenders Mortgage Insurance (LMI) under the Scheme, other costs associated with purchasing a home and establishing a loan may still apply.
Speak to a specialist about your eligibility
The Australian Government 5% Deposit Scheme is subject to government eligibility criteria and property Price Caps. All applications are subject to Cairns Bank lending criteria, terms, conditions, fees and charges. Applicants must meet eligibility and credit assessment requirements. The Government guarantee supports the lender — you remain responsible for repaying the full loan amount (principal and interest).