The Australian Government 5% Deposit Scheme is for aspiring home buyers – first home buyers with a minimum 5% deposit, or single parents with a minimum of 2%. The Scheme is administered by Housing Australia on behalf of the Australian Government.

Australian Military Bank is proud to be supporting the initiative and eligible home buyers to enter the property market.

The Scheme helps single parents or legal guardians who have saved a minimum 2% deposit

with a Government guarantee.

The Scheme helps first home buyers who have saved a minimum 5% deposit with a

Government guarantee.

Under the Scheme, part of an eligible home buyer’s home loan from a Participating Lender will be guaranteed by Housing Australia.

Not sure which Guarantee to apply for? Answer a few questions to find out which Guarantee you could apply for.

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

✔ 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 3 years to build a new home)

✔ Applying on your own or jointly (max 2 applicants) with a partner, friend, or family

member. 

To apply for the Scheme, you'll be subject to certain eligibility criteria. You need to be able to provide documentation of your eligibility to secure your position.

To make things easier, there is an online tool available on the Housing Australia website to help you to understand which Guarantee you may apply for.

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

✔ 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 3 years to build a new home)

✔ Applying on your own (no joint applications).

In addition to the Australian Government 5% Deposit Scheme, you may be eligible for the DHOAS home loan subsidy. Get in touch to talk to us about DHOAS or check out our DHOAS Home Loans.

There are a number of initiatives that may benefit you in addition to these Guarantees, you may be eligible for the First Home Owner Grant and Stamp Duty exemption.

Speak to us today so we can help you make the most of these initiatives depending on your circumstances.

By submitting this form, I acknowledge that I have read Australian Military Bank’s Privacy Collection Notice and understand Australian Military Bank may use my personal information as outlined in the notice

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LMI is a requirement for borrowers when their home loan deposit is less than 20% of their property’s purchase price. This is charged at the time of settlement and can be paid up front or capitalised onto the total loan amount (conditions apply).

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Not all home loans are able to take the benefit of the Scheme. The Scheme is restricted to ‘Eligible Loans’, which are home loans:

• made by a Participating Lender to
  (1) a single eligible first home buyer, or
  (2) a couple who are both eligible home buyers, and
• that are for the purchase of an Eligible Property that is to be occupied by you as the owner, for as long as it is backed by the Scheme

In addition to these overarching eligibility requirements, the loans must:

• be secured by a registered first ranking mortgage over the eligible property
• have no other registered owners at the time of settlement other than the eligible borrower/s
• have 100% of the loan drawdown proceeds used for the purchase (or towards the purchase and improvement) or construction of the eligible property
• have a loan amount commitment not less than 80% and not more than 98% of the relevant Value of the property
• have a loan term of 30 years or less
• require regular repayments of principal (with limited exceptions for interest-only loans, which mainly relate to construction lending). Exception to this will be granted during the construction of a new dwelling, whereby lenders will be able to allow borrowers to make interest only repayments for the period in which the dwelling is being constructed until it can be occupied by the borrower.

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For a property to be eligible for the Scheme it must:

• be a ‘residential property’ – this term has a particular meaning under the Scheme, and you should ask your lender if there is any doubt
• have a purchase price under the price cap for its location – click here to view the property price caps
• be purchased by an eligible first home buyer under the Scheme (if applying for the First Home Guarantee)
• at the settlement date for your home loan, you will be the sole registered owner/s of the property
• be a property which is (1) an established dwelling, or (2) a new-build dwelling that is purchased under a house and land package, a land and separate contract to build a home or an ‘off-the-plan’ arrangement that is financed under an Eligible Loan from a participating lender

​For more information, visit: https://firsthomebuyers.gov.au/

Applications are subject the banks normal lending criteria. Fees charges and lending criteria apply and will be included with our loan offer. A Financial Services Guide (FSG) is available at all Branches, on our website and upon request.

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