5% Deposit Home Loan - Buy with Just 5% Down | Esteb and Co
🎉 Unlimited Places Since Oct 2025

Get a Home Loan with Just 5% Deposit

No LMI. Government-backed. No income caps. Compare 83 lenders instantly and save $15,000-$40,000.

Check My Eligibility → See How It Works
💰
$15K-$40K
Average LMI Savings
🏠
5%
Minimum Deposit Required
🚫
No Cap
On Income (Since Oct 2025)
⚡
83
Lenders Compared

How 5% Deposit Home Loans Work

The Australian Government's First Home Guarantee lets you buy with just 5% down - and you don't pay LMI

1️⃣

You Save 5% Deposit

Instead of needing 20% ($100K on a $500K property), you only need 5% ($25K). That's $75,000 less to save.

2️⃣

Government Guarantees 15%

The First Home Guarantee covers the missing 15%, so you don't need to pay Lenders Mortgage Insurance (LMI).

3️⃣

You Buy Your Home Sooner

Instead of waiting 5-7 years to save 20%, you can buy now with 5%. Get into the market years earlier.

4️⃣

Save $15K-$40K in LMI

On a $500K property, you'd normally pay $15K-$20K in LMI with a 5% deposit. With this scheme, you pay $0.

📊 Real Example: Buying a $600K Property

❌ Traditional 5% Deposit
  • Deposit: $30,000 (5%)
  • LMI: $24,000
  • Total upfront: $54,000+
✅ First Home Guarantee
  • Deposit: $30,000 (5%)
  • LMI: $0 (government-backed)
  • Total upfront: $30,000+

💰 Save $24,000!

Am I Eligible for a 5% Deposit Loan?

Check if you qualify for the First Home Guarantee scheme

✅

Citizenship

Australian citizen or permanent resident. You must be able to prove residency status.

🏠

First Home Buyer

Never owned property before, or haven't owned a home in Australia in the last 10 years.

💵

No Income Cap

NEW from Oct 2025: No income limits! Previously $125K (singles) or $200K (couples).

📍

Property Price Caps

Your property must be under the cap for your city (see table below). Caps increased 40% in Oct 2025.

🏡

Owner-Occupied Only

Must be your main residence. You need to move in within 12 months and live there for at least 6 months.

🔨

New or Established

Existing homes OK. New homes must be less than 5 years old. Off-the-plan not eligible.

🗺️ Property Price Caps by Location

Location Price Cap Example: 5% Deposit
Sydney $1,500,000 $75,000
Melbourne $950,000 $47,500
Brisbane $1,000,000 $50,000
Perth $700,000 $35,000
Adelaide $700,000 $35,000
Canberra $800,000 $40,000
Regional Areas Varies by region Check with us

5% Deposit Options Compared

Not eligible for the First Home Guarantee? Here are your other 5% deposit options

🏆 Best Option

First Home Guarantee

$0 LMI
  • ✅ 5% deposit
  • ✅ No LMI (government-backed)
  • ✅ No income cap (since Oct 2025)
  • ✅ Unlimited places
  • ⚠️ Must be first home buyer
  • ⚠️ Property price caps apply

💰 Save $15K-$40K in LMI

Family Guarantee

$0 LMI
  • ✅ 5% (or even less) deposit
  • ✅ No LMI
  • ✅ No price caps
  • ✅ Not just for first home buyers
  • ⚠️ Need parents' property as security
  • ⚠️ Puts parents' home at risk

Good if: Parents willing to help

Standard 5% + LMI

$15K-$40K LMI
  • ✅ 5% deposit
  • ✅ Available to anyone
  • ✅ No restrictions
  • ✅ Investment properties OK
  • ❌ Pay LMI ($15K-$40K)
  • ❌ Higher interest rates

Good if: Not eligible for schemes

Save 20% Deposit

$0 LMI
  • ✅ No LMI
  • ✅ Better interest rates
  • ✅ More lender options
  • ✅ Lower monthly repayments
  • ❌ Takes 5-7 years to save
  • ❌ Miss market growth while saving

Trade-off: Save longer but pay less

Find My Best Option →

83 Lenders Offering 5% Deposit Loans

Our algorithm instantly compares all participating lenders to find your best match

Not all lenders participate in the First Home Guarantee scheme. We compare 83 major and specialist lenders including:

🏦 Major Banks

  • Commonwealth Bank
  • Westpac
  • ANZ
  • NAB

💻 Online Lenders

  • ING
  • 86 400
  • Athena
  • Unloan

🏛️ Regional Banks

  • Bendigo Bank
  • Bank of Queensland
  • Newcastle Permanent
  • People's Choice

⭐ Specialist Lenders

  • Firstmac
  • Pepper Money
  • Liberty
  • + 20 more

🤖 Our Algorithm Matches You in 60 Seconds

We analyze your situation against 83 lenders' policies and give you a match confidence score for each. No more guessing which lender will approve you.

  • ✓ Approval probability: 75%-95%
  • ✓ Best rate for YOUR situation
  • ✓ Features that matter to you
  • ✓ No wasted applications

How to Apply for a 5% Deposit Home Loan

Get approved in as little as 3-7 days

1

Check Eligibility (2 minutes)

Use our quick assessment to see if you qualify for the First Home Guarantee scheme.

  • Answer a few simple questions
  • Get instant eligibility result
  • See your borrowing power
2

Get Matched to Lenders (Instant)

Our algorithm compares 83 lenders and shows your best matches with approval confidence scores.

  • See 3-5 top matched lenders
  • Compare rates and features
  • Choose your preferred lender
3

Submit Application (Same Day)

Gather your documents and submit your formal loan application.

  • Payslips (last 3 months)
  • ID documents
  • Bank statements (3-6 months)
  • Tax returns (if self-employed)
4

Lender Arranges Guarantee (3-7 Days)

Lender submits your application to Housing Australia for the government guarantee.

  • Lender verifies your eligibility
  • Housing Australia approves guarantee
  • You receive conditional approval
5

Find Property & Settle (4-6 Weeks)

Start house hunting with your pre-approval, then move to unconditional approval and settlement.

  • Make offers on properties
  • Property valuation completed
  • Unconditional approval
  • Settlement - keys in hand! 🎉

5% Deposit Home Loan FAQs

Do I have to pay the government back for the guarantee?

No. The First Home Guarantee is free. You don't pay anything to the government. You just pay your regular mortgage to the lender.

What if I earn more than $125K? Can I still get a 5% loan?

Yes! Since October 2025, there are no income caps. Anyone can use the First Home Guarantee regardless of income (as long as you meet other requirements).

Can I use the 5% scheme for an investment property?

No. The First Home Guarantee is only for owner-occupied properties (your main residence). Investment properties don't qualify.

Are there still limited places in the scheme?

No. As of October 2025, there are unlimited places. You don't need to rush or compete for a spot.

What if the property is over the price cap?

You can't use the First Home Guarantee if the property exceeds the cap. You'd need to either find a cheaper property, save a larger deposit, or use a family guarantee.

Can I refinance later and keep the guarantee?

Once your loan balance drops to 80% LVR (usually after 2-5 years of repayments), you can refinance without needing the guarantee anymore.

What happens if I sell the property early?

You can sell anytime. The guarantee just falls away when you sell. There's no penalty or repayment required.

How much can I borrow with a 5% deposit?

It depends on your income and expenses. Generally, banks lend 6-8 times your annual income. Use our calculator to find out your exact borrowing power.

Ready to Buy with Just 5% Deposit?

Compare 83 lenders and get matched to the best 5% deposit home loan for your situation. Save $15,000-$40,000 in LMI.

✓ Free service
✓ No credit score impact
✓ 2-minute eligibility check
✓ Same-day matching
Check My Eligibility Now →
Ricky Esteb - Licensed Mortgage Broker
Richard (Ricky) Esteb
Licensed Mortgage Broker & Founder
Credit Rep #574071 ACN 681 636 056 83+ Lender Panel

With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking. Every piece of content is written from real-world lending experience.

✓ Verified & Last Reviewed: December 2025 | Content meets ASIC regulatory requirements
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