5% Deposit Home Loans Melbourne | First Home Buyer Guarantee | Digital Finance Solutions
Australian Government 5% Deposit Scheme

Buy Your First Home With a 5% Deposit — Avoid LMI, Subject to Eligibility

Eligible first home buyers may be able to enter the Melbourne property market sooner — with a smaller deposit and without paying Lenders Mortgage Insurance. Subject to eligibility and lender approval.

No broker fee Same-day response 30+ lenders compared

From 1 October 2025 — income caps removed, places unlimited, Melbourne price cap $950,000

The Scheme Explained

How the 5% Deposit Scheme Works

The Australian Government guarantees part of your loan — which may allow you to borrow with a smaller deposit without paying LMI, subject to lender approval and eligibility criteria.

Step 01

Save a 5% Deposit

Instead of needing 20% to avoid LMI, eligible buyers may be able to purchase with as little as 5% — with the government guaranteeing the remaining portion.

Step 02

Apply Through a Participating Lender

The scheme is only available through approved lenders and authorised brokers. You can't apply directly through the government — a broker identifies the right lender for your situation.

Step 03

Buy Within the Price Cap

Property price caps apply depending on location. Melbourne's current cap is $950,000. A broker confirms the applicable cap for your target suburb before you make an offer.

Step 04

Settle and Move In

Once approved, the process runs like any other home loan — we manage the application, liaise with the lender, and guide you to settlement.

Who Qualifies

Eligibility Criteria

The scheme has specific requirements. A broker confirms whether you meet them and helps you identify the right lender.

  • Australian citizen or permanent resident
  • First home buyer — never previously owned property in Australia
  • Intend to live in the property as your principal place of residence
  • Minimum 5% genuine savings as a deposit
  • Property purchase price within the applicable regional cap
  • No income cap — removed from 1 October 2025

Eligibility is assessed by the lender, not the government. Meeting scheme criteria does not guarantee loan approval.

Not Sure If You Qualify?

Eligibility depends on your deposit, the property you're buying, and the lender's own assessment. A free call takes 15 minutes and gives you a clear picture of where you stand.

Book Free Call 0419 891 983

The information on this page is general in nature and does not constitute financial or credit advice. Eligibility is subject to lender assessment and scheme criteria.

Victoria Property Limits

Current Price Caps — Victoria

Property price caps apply to all scheme purchases. Confirm the current cap for your target suburb with your broker before making an offer — caps may be updated by Housing Australia.

Melbourne & Major Centres
$950,000
Capital city & regional centre cap
Regional Victoria
$650,000
Rest of state cap
Why Use a Broker

Why Access the Scheme Through Digital Finance Solutions

You can only access the scheme through participating lenders — and not every lender handles the guarantee the same way.

  • Access to Multiple Lenders

    Not all participating lenders offer the same rates or policies. We compare across 30+ lenders to find the option that suits your situation — not just the easiest one to process.

  • Scheme Application Support

    The guarantee application runs alongside your home loan application. We manage both — making sure nothing is missed and the process moves as quickly as possible.

  • Eastern Suburbs Local Knowledge

    Based in Melbourne's eastern suburbs — the Knox corridor, Ringwood, Wantirna, Bayswater. Local property knowledge, not just loan knowledge.

  • No Cost to You

    Mortgage brokers are paid by the lender when your loan settles — not by you. There's no fee for using a broker, and no obligation after your initial call.

  • Combine With Other Grants

    The scheme may be used alongside the First Home Owner Grant and stamp duty concessions, depending on your circumstances. We map out what you may be eligible for.

Major Banks Non-Bank Lenders First Home Buyer Specialists 30+ Lenders Total
Frequently Asked

First Home Buyer Guarantee — Common Questions

The Australian Government 5% Deposit Scheme (formerly the First Home Guarantee) allows eligible first home buyers to purchase a property with a 5% deposit without paying Lenders Mortgage Insurance. The government guarantees up to 15% of the property value, removing the need for LMI — subject to eligibility and lender assessment.
No. From 1 October 2025, the income caps were removed. There is no longer an income limit to be eligible for the scheme. Places are also now unlimited — there is no annual cap on the number of guarantees issued.
The current price cap for Melbourne and major regional centres in Victoria is $950,000. Regional Victoria (outside major centres) has a cap of $650,000. Caps are set by Housing Australia and may be updated — confirm the cap for your target suburb with your broker before making an offer.
Potentially yes — depending on your circumstances, the scheme may be used alongside the First Home Owner Grant and Victorian stamp duty concessions. A broker can confirm which grants and concessions you may be eligible for and how they interact.
No. Our home loan services are paid by the lender when your loan settles — at no cost to you. Any fee, if applicable to your situation, is disclosed in full before you proceed.
Pre-approval can be 24 to 72 hours with the right documentation in order. Full approval typically completes within 2 to 6 weeks depending on the lender and property type. We tell you upfront what's needed so there are no delays.

Ready to Find Out If You Qualify?

A 15-minute call is all it takes. No jargon, no pressure — just a straight answer on where you stand and what's possible.