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Buy your home sooner with a smaller deposit

The Australian Government 5% Deposit Scheme makes home ownership more achievable by helping eligible first home buyers and single parents purchase with a smaller deposit, supported by a Government Guarantee.
First Home Buyers

5

%
minimum deposit
Single Parents & Guardians

2

%
minimum deposit
Check your eligibility
You will be redirected to the official Australian Government 5% Deposit Scheme eligibility checker.
Talk to a specialist

Local Lending Experts

here to guide you

Support Through The Process

from enquiry to settlement

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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

Contact Cairns Bank to find out how to apply and what your next steps will be.

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 First Home Buyers website 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.

Check your Postcode
You will be redirected to the official Australian Government 5% Deposit Scheme eligibility checker.

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.

Talk to a specialist

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.

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.

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.

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.

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).

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).

Additional Information

For more information, download:
Other grant options you may be eligible for: