Buy With a 5% Deposit & Pay Zero LMI

Get into your dream home years faster. Secure an owner-occupier property with just a 5% deposit and skip Lenders Mortgage Insurance entirely, saving you up to $30,000 upfront.

--- Why Choose 5% Deposit ---

Advantages Of The 5% No LMI Scheme

Accelerate your property journey without high financial friction or insurance penalties.

Speed

Enter Market Years Sooner

Skip the grueling 3–5 year timeline typically needed to build up a full 20% cash deposit in rising markets.

Cost Savings

Complete LMI Exemption

Lenders Mortgage Insurance protects the bank, not you. The federal guarantee eliminates this fee entirely.

Prime Interest Rates

Standard Rate Discounts

Participating lenders treat your loan as a low-risk 80% LVR product, granting competitive market rates.

Capital Protection

Keep Cash Reserves

Retain emergency savings for move-in expenses, light modifications, or unexpected life costs.

---How It Works ---

The Government Guarantee Explained

Usually, banks require you to pay Lenders Mortgage Insurance if you have less than a 20% deposit. Under this scheme, Housing Australia acts as a financial guarantor for up to 15% of the property value.

Not a Cash Grant

The government isn't giving cash; they guarantee the shortfall so the bank waives insurance fees

No Repayment Interest To Gov

You only borrow and repay your standard home loan balance with the lender.

Compatible with Stamp Duty Concessions

Combine this scheme with state first-home buyer stamp duty waivers!

--- Regional Caps ---

Know Your Local Property Price Thresholds

To qualify for the 5% deposit scheme, your property purchase price must be equal to or below regional price caps set by Housing Australia.

Capital Cities & Regional Centers

Higher thresholds (e.g., $800k in Sydney/NSW capital, $700k in Melbourne/VIC capital).

Rest of State

Tailored regional caps designed for country towns and rural districts.

Instant Address Lookup

We check your target suburb postcode against current government thresholds instantly.

--- Application Guide ---

How To Secure Your 5% Guarantee Place

We navigate lender panel quotas and secure your government place without stress.

1. Pre-Assessment

We confirm your eligibility, check income documents, and calculate your target price threshold.

2. Place Reservation

We lock in your place with a participating scheme lender before allocations fill up.

3. Pre-Approval

Receive formal loan pre-approval so you can make offers or bid at auctions with total confidence.

4. Final Settlement

Sign purchase contracts, pay your 5% deposit, and collect the keys to your new home!

--- OUR LENDING PANEL ---

Your bank isn't your only option. Compare 40+ lenders for a better deal.

We compare a wide range of lending options to help you find a finance solution that suits your goals and circumstances.

--- Got Questions? ---

5% Scheme FAQs

Clear answers to common questions regarding low deposit loans.

Do I have to repay the government's 15% guarantee?

No. The guarantee is not a loan or cash payment. It is a government pledge to the bank to absorb risk, meaning you pay zero interest or repayments on that 15% portion.

What documents do I need to prove my eligibility?

You will need photo ID, 3 months of bank statements showing genuine savings, recent payslips, and your most recent ATO Notice of Assessment.

Can I buy an investment property with this scheme?

No. The First Home Guarantee is strictly reserved for owner-occupier residential properties. You must move into the property within 12 months of settlement.

What if I haven't owned property in over 10 years?

You qualify! Under updated government rules, previous property owners who haven't owned real estate in Australia in the past 10 years are eligible as first home buyers.

LET'S TALK

Check If You Qualify For 5% No LMI

Spaces in the government guarantee scheme are allocated per financial year. Contact Singh Loan & Finance today to reserve your place.