Buy a home with as little as 5% deposit

The Australian Government 5% Deposit Scheme

We know saving for a home deposit can be challenging as the market shifts and life commitments take priority. At Woolworths Team Bank, we may be able to help you secure your home sooner.

The Australian Government 5% Deposit Scheme is designed to help eligible buyers purchase a home with a lower deposit, saving you time and reducing upfront costs.

• Low Deposit: Purchase a home with as little as a 5% deposit (or 2% for eligible single parents).
• Save Money: Avoid paying Lenders Mortgage Insurance (LMI), reducing your upfront costs.

How does it work?

The government provides a guarantee to participating lenders. This guarantee allows the lender to provide an owner-occupied home loan for up to 95% or 98% of the home’s value without you needing to pay for Lender’s Mortgage Insurance (LMI). This structure allows eligible first home buyers and single parents to purchase sooner.

Who is eligible?

You may be eligible if you meet the following requirements:

• You are an Australian citizen or permanent resident aged over 18 years old.
• You are purchasing your first home (or have not owned property in Australia in the past 10 years).
• The purchase is for a home you intend to live in (no investment properties).
• You have saved the minimum deposit of 5% (or 2% for single parents).
• The home is within the property price caps for your location.
• The loan is an owner-occupied home loan with principal and interest repayments, up to 30 years (plus an additional 3 years to build a new home).

You can apply as an individual or jointly with one other person (partner, friend, or family member).

Check your eligibility

What can I buy?

Eligible property types include:

• New or existing homes
• Townhouses
• Apartments
• House and land packages
• Off-the-plan purchases
• Vacant land with a building contract

Please remember that property price caps apply depending on your location.

View property price caps

Getting ready to apply

Gathering the following information in advance will help you get started:

• Check your eligibility using the Eligibility tool.
• Proof of your income and savings.
• A clear idea of your budget and borrowing capacity.

You may also want to estimate your stamp duty costs.

Fact sheets and information guides

Australian Government 5% Deposit Scheme First Home Buyers Information Guide

Australian Government 5% Deposit Scheme Fact Sheet

 

We’re here to help

Our friendly team can help you understand your options and guide you through the process of securing your home.

Talk to us today on 1300 665 553!