Australian Government 5% Deposit Scheme for your clients
Brokers could help their clients buy their home sooner, with a low deposit and no need to pay Lenders Mortgage Insurance.
How it works
Is your client eligible for help?
To qualify for the Scheme, your client needs to at least meet these criteria:
- Australian citizen(s) or permanent resident(s) over 18 years old
- Applying for an owner occupier home loan with principal & interest repayments
- Single parent or single legal guardian (min 2% deposit) with at least one dependent child, they don’t own a property or won’t own a separate property upon settlement of new home (Single Parents)
- Or a first home buyer (min 5% deposit), or a previous home buyer who hasn't owned a home in the last 10 years (First Home Buyer).
Explore these two pathways for your client
Single Parents: min 2% deposit and no LMI
About your client
- Single parent or single legal guardian with at least one dependent child
- Australian citizen or permanent resident over 18 years old
- First home buyer or previous home buyer who doesn’t currently own property, or who doesn't own a separate property when settling on their new home
What sort of home can they buy?
Any residential property in Australia priced below the property price caps. Properties include:
- Existing or newly-built property
- Off-the-plan property
- Vacant land with a fixed price contract to construct a residence
- House & land package
What type of home loan can they apply for?
- An owner occupier home loan
- A loan on Principal & Interest repayments (except during the construction phase, if building a new home)
FAQs
If your client's loan is supported by the Scheme, there's no need for them to pay LMI.
LMI can cost thousands, so they'll make significant savings.
The bank for first home buyers
Awarded at RFi Group Australian Lending Awards 2021 for Best First Home Buyer Lender.
Need some help but don’t know where to start?
The first port of call is to contact your Aggregator or a Business Development Manager (BDM) from your State or Territory. Or call our Broker Hotline.
Call the Broker Hotline, Monday to Friday:
8.30am-5pm (ACDT), 8.30am-5:30pm (AEDT)
Quick tips, handy tools, and resources
Home loan calculators
Important information
Conditions, credit criteria, fees and charges apply. Based on BankSA credit criteria, residential lending is not available for Non-Australian Resident borrowers. This info has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the info and, if necessary, seek appropriate professional advice.
Advantage Package – Terms and Conditions (PDF 434KB)
To find out more visit the Scheme website.
+LVR stands for the initial loan to value ratio at loan approval. LVR is the amount of your loan compared to the banks valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and don’t change because of changes to the LVR during the life of the loan. Any applicable LVR discount has been included in the advertised eligible rate.
*Advantage Package: Terms & Conditions (PDF 434KB) apply. A $395 annual package fee applies and is payable from an eligible BankSA transaction account. Before deciding to acquire a BankSA transaction account, read the terms & conditions, and consider if the product is right for you.
This information's been prepared without taking your clients objectives, needs and overall financial situation into account. For this reason, your client consider the appropriateness of the information and, if necessary, seek appropriate professional advice. This includes any tax consequences arising from any promotions for investors and customers should seek independent advice on any taxation matters.