Frequently asked questions

In very simple terms - you meet the eligibility criteria, save a small deposit to contribute (minimum 5% for first home buyers or minimum 2% for single parents or legal guardians), go to a Participating Lender for a home loan that is backed by the Australian Government, buy your home and move in. 

A low deposit (minimum 5% for first home buyers or minimum 2% for single parents or legal guardians), no income caps, no waitlists and no LMI helps get you into your own home sooner and with lower upfront costs.

There are unlimited places available for home buyers who are eligible.

Just a minimum of 5% of your home's value if you're buying your first home (or haven't owned a home or land in Australia in the last 10 years), or a minimum of 2% if you're a single parent or legal guardian. If you have saved a larger deposit, you may be asked to contribute more than the minimum.

It’s a % of the home's value, as assessed by your Participating Lender. That valuation might be different to the purchase price – if that happens, talk with your Participating Lender about what that means for you. 

There are no income caps for the Scheme.

If you're applying as a first home buyer, then you must be a first home buyer or not have owned a home or land in Australia in the last 10 years. 

The 10-year period is measured from the date your previous property was sold, to the date you enter into a new loan agreement under the Scheme.

If it has been less than 10 years since you owned a property, you may not be eligible. Please speak with a Participating Lender about your circumstances.

If you are applying as a single parent or legal guardian, you don't have to be a first-time buyer, but you can't own another home or have any property interest once your new home settles.

Choose a new or existing home to live in - a house, townhouse, apartment, house and land package, off-the-plan purchase, or vacant land with a building contract – it must be in Australia and priced at or below the location's price cap. 

Under the Scheme, you must move into the property within six months of settlement and continue living there while the Government backing (Guarantee) is active.

If the property has existing tenants, this is permitted as long as you move in within the six-month timeframe.

If you don’t move in on time, or you move out before the Guarantee ends, this may affect your eligibility. In these cases, your lender may require you to pay Lenders Mortgage Insurance (LMI).

Please speak with your Participating Lender if you have questions about your situation.

Follow our easy 4-step guide: Check your eligibility, contact a Participating Lender to get assessed and submit your application, then find and buy your home once approved. You can't apply to Housing Australia directly, only via a Participating Lender.

If you are applying as a first home buyer, you can apply on your own or jointly with one other person (a partner, friend or family member) – both of you need to meet the eligibility criteria. If you're applying as a single parent or legal guardian you can only apply as an individual  – no joint applications.

There are authorised Scheme lenders across Australia – find the full list on the Participating Lenders page.

There are no fees to use the Scheme. However, you are responsible for all home loan costs and repayments, such as stamp duty or legal fees.

Talk to your Participating Lender for the full list, but expect to provide documents such as your full name, date of birth, Medicare number (or PMKey if relevant), proof of citizenship or residency, and a completed Home Buyer Declaration form. Single parents or legal guardians need additional documents relating to their dependent child or children.

You're eligible if you're single (no spouse or de facto partner – separated but not divorced doesn't count) and the natural parent, adoptive parent, or legal guardian of at least one dependent child.

A dependent child can be one of the following:

• a person aged 16 years or older, who lives with you and receives a disability support pension (as defined in the Social Security Act 1991)
• a “dependent child” (as defined in sections (2), (3), (4), (5), (6), and (7) of Section 5 of the Social Security Act 1991) where:
  • they are under the age of 16, live with you, and you are legally responsible (part or full-time) for their day-to-day care, welfare and development; or
  • they are between 16 and 22 years old, live with you, and are wholly or substantially dependent on you, and their financial year income is no more than $14,370.55 (effective 1 January 2025).

The Government backing protects your lender, not you. It covers the lender for a shortfall up to an agreed limit if selling the home doesn't pay off the loan. Talk to your lender early if you're experiencing financial difficulties.

Get in touch with your Participating Lender as there are some circumstances that may affect the ongoing Government backing of your loan.

The Scheme is only available to Australian Citizens and Permanent Residents. The rules set by the Australian Government don’t list or cover other visa types.

If you’re unsure whether your visa makes you a Permanent Resident, your Participating Lender will confirm this as part of their lending assessment and check whether you meet the Scheme’s requirements.

We recommend contacting a Participating Lender to discuss your individual circumstances.

If you apply for a Scheme place on or after 1 October 2025, you will no longer be assessed against income caps under the Scheme. However, if the application was submitted prior to 1 October 2025, the pre-1 October 2025 eligibility criteria continue to apply, including income caps and the requirement to provide a Notice of Assessment.

From 1 October 2025 the Home Guarantee Scheme has been rebranded as the Australian Government 5% Deposit Scheme.  In addition to the rebrand, the new Scheme will include the following changes:

• Removing income caps for Scheme applicants

• Increasing the property price caps in line with average house prices

• Removing the limit on the number of places for all guarantees

• The Regional First Home Buyer Guarantee will be closed to new applicants and regional home buyers can now purchase as either first home buyers or single parents and legal guardians depending on their circumstance.

Yes. Existing Home Guarantee Scheme applications (including Regional First Home Buyer Guarantee) that have been pre-approved are still valid and can be finalised even after 1 October 2025. However, the pre-1 October 2025 income caps and property price caps will still apply and your lender will still require your Notice of Assessment.

The Regional First Home Buyer Guarantee will be closed to new applications from 1 October 2025. Reserved places that have not progressed to a pre-approved status by 1 October 2025 will need to resubmitted under the Australian Government 5% Deposit Scheme. Speak to your Participating Lender on which guarantee would best suit you.

Yes. But if you choose to withdraw an application submitted prior to 1 October 2025 and start a new application after 1 October 2025, a new Home Buyer Declaration is required.  

You should be aware that withdrawing and reapplying may affect application timeframes and settlement dates. Please discuss any implications with your Participating Lender.

If you applied for a Scheme place prior to 1 October 2025, the pre-1 October 2025 eligibility criteria and property price caps continue to apply, even if you don’t find and settle on a property until after 1 October 2025.

For applications submitted to a Participating Lender on or after 1 October 2025, the new property price caps will apply.