What is australian government 5% deposit scheme?

The Australian Government 5% Deposit Scheme, administered by Housing Australia, lets eligible buyers purchase with as little as a 5% deposit (2% under the Single Parent Stream) without paying Lenders Mortgage Insurance. The Government guarantees the gap between the buyer's deposit and the standard 20%, it's a guarantee to the lender, not a cash payment to the buyer.

The scheme was expanded and renamed on 1 October 2025: it now runs two streams, the General Stream (5% deposit, for first home buyers) and the Single Parent Stream (2% deposit, for single parents and single legal guardians). The former Regional First Home Buyer Guarantee is closed to new applicants, regional buyers now apply through whichever of those two streams fits their circumstances. The separate Help to Buy shared-equity scheme remains available alongside it.

Since the 1 October 2025 change, income caps and the annual place limit no longer apply, so eligibility mainly comes down to being a genuine first home buyer (or, under the Single Parent Stream, a single parent or legal guardian) and the property sitting under the location's price cap. Price caps vary by state and region and can be adjusted, so confirm the current cap for your area with Housing Australia before relying on it.

Also called

HGS · 5% Deposit Scheme · Australian Government 5% Deposit Scheme · first home guarantee · Home Guarantee Scheme

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