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What is the Australian Government 5% Deposit Scheme?
The Australian Government 5% Deposit Scheme (the Scheme) helps you buy your first home with a minimum 5% deposit with a Government guarantee. No income caps, no waitlists and no LMI means you have lower upfront costs and could own your first home sooner.
People's Choice is a participating lender offering the Scheme. If you're interested in applying please register your interest below or speak with our Home Loan Specialists to discuss the options available to you.
Key Scheme features:
- Low deposit options
- No income cap
- No Lenders Mortgage Insurance (LMI)
- Wide choice of home types
- Government-backed support: A Government guarantee is provided to the lender for your loan
- Unlimited spots and no waiting lists
- Purchase a property up to the property price caps set by the Scheme for your location
Who is eligible for the Australian Government 5% Deposit Scheme?
- Have a minimum 5% deposit
- Buying a home in Australia priced at or below the location's price cap
Be Australian citizens or permanent residents
- Be applying as individual or joint applicants, which may include partners, friends, siblings, and other family members
- Planning to live in the home as an owner-occupier (no investment properties)
- Be first home buyers or previous home owners who haven't owned a property in the ten years prior to the date they execute their home loan. Prior property ownership includes a freehold interest in real property in Australia (this includes owning land only), an interest in a lease of land in Australia with a term of 50 years or more, or a company title interest in land in Australia.
Property price caps
FAQs
What is the Australian Government 5% Deposit Scheme?
The Australian Government 5% Deposit Scheme is designed to support eligible home buyers to enter the housing market sooner. It does this by allowing Housing Australia to issue guarantees for eligible loans to home buyers with a deposit of between 5 and 20% of the property value.Who is eligible for the Australian Government 5% Deposit Scheme?
You can check your potential eligibility on the Housing Australia website.What types of properties can I buy?
Visit the Housing Australia website to use the Property Price Cap Tool – a postcode search tool to help home buyers determine the property price caps for the suburb they are purchasing in.Is there a property price limit under the Australian Government 5% Deposit Scheme?
Maximum purchase prices (property price caps set by Government legislation) are applicable for eligible properties purchased under the Australian Government 5% Deposit Scheme. You can find them on the Housing Australia website.Do I have to pay LMI in the Australian Government 5% Deposit Scheme?
No. The Australian Government 5% Deposit Scheme allows eligible home buyers with deposits as low as 5% to get a home loan without paying Lenders Mortgage Insurance (LMI) fees.How do I apply for the Australian Government 5% Deposit Scheme?
Please visit our dedicated Australian Government 5% Deposit Scheme page or speak with one of our Home Loan Advisers.I’ve successfully gained an Australian Government 5% Deposit Scheme place reservation. What documentation do I need to provide People’s Choice to complete my application to obtain finance pre-approval?
• Completed and signed application form – including signed privacy declaration;
• Needs Analysis;
• Verification of income and expenses – payslips etc;
• Evidence of 5% genuine savings;
• Evidence of funds to complete the transaction – savings plan/gift from family;
• Signed Home Buyer Declaration (Statutory Declaration) – Peoples Choice will provide this to you.
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People’s Choice Credit Union is collecting the above information so that we may respond to your enquiry and provide information in relation to products and services we provide. We will only use this information, unless you are already a member or subsequently decide to obtain a service or product from us, to respond to your enquiry and to contact you from time to time to provide you with information about services and products which may be of interest to you (including products and services of third parties). We may not be able to contact you if you do not provide to us this information. You can opt out of receiving direct marketing from us at any time. We disclose your personal information to relevant members of our staff. We may also disclose your personal information to agents, contractors, government agencies and bodies who assist us in our dealings with you. Our Privacy Policy (which you can obtain at this link, in branch or by contacting us on 13 11 82 and asking for a copy) contains more information on how you can access and correct your personal information, how we use your personal information (including how to opt out of marketing), how to complain if you believe we’ve breached our privacy obligations, and how we deal with complaints. It also provides more detail on how we manage and protect your personal information if you are interested. People's Choice address is 50 Flinders St, Adelaide, 5000.
Single parent?
Are you a single parent? Find out how the Australian Government 5% Deposit Scheme can help you.
