{"id":4795,"date":"2025-12-01T11:18:42","date_gmt":"2025-12-01T00:18:42","guid":{"rendered":"https:\/\/ecovisclarkjacobs.com.au\/?p=4795"},"modified":"2025-12-02T11:06:39","modified_gmt":"2025-12-02T00:06:39","slug":"five-per-cent-zero-drama-a-clean-path-to-first-keys-a-practical-guide-to-the-5-deposit-scheme","status":"publish","type":"post","link":"https:\/\/ecovisclarkjacobs.com.au\/de\/five-per-cent-zero-drama-a-clean-path-to-first-keys-a-practical-guide-to-the-5-deposit-scheme\/","title":{"rendered":"Five Per Cent, Zero Drama: A Clean Path to First Keys – A practical guide to the 5% deposit scheme"},"content":{"rendered":"

Dentists are great at delayed gratification (hello, five years of study), however if you are currently making the juggle of renting and trying to save a home deposit it is easy to feel like home ownership is an impossible dream. There is a potential game changer that came in from 1 October 2025. If you\u2019ve scraped together 5%, the government will guarantee up to 15% of the property value so you can skip Lenders Mortgage Insurance (LMI) and get the keys sooner. It\u2019s a boost to the current scheme as there\u2019ll be unlimited places, no income caps, and higher property price caps.\u00a0\u00a0<\/span><\/p>\n

\u00a0<\/span>Historically the 5% deposit scheme capped incomes at $125,000 per individual and $200,000 per couple which meant that very few dentists would qualify.\u00a0 Now that the income caps are being scrapped, it could make a big difference for first time buyers.\u00a0<\/span><\/p>\n

\u00a0<\/span>How it works<\/b>\u00a0<\/span><\/p>\n

You save 5%; and your lender lends the rest. Housing Australia provides a guarantee to your lender (not a cash gift to you) of up to 15% of the property value, so your lender treats you like you had a 20% deposit and therefore doesn\u2019t levy LMI.\u00a0 It\u2019s for owner-occupiers, on P&I loans up to 30 years, and you must buy under the price cap for your location. You apply via a participating lender who reserves your guarantee place, then you have a time limit to find and exchange contracts.\u00a0 You can see if your bank is a part of the scheme here (interestingly ANZ didn\u2019t make the cut): https:\/\/www.housingaustralia.gov.au\/home-guarantee-scheme-participating-lenders<\/i><\/a>\u00a0<\/span><\/p>\n

\u00a0<\/span>Who\u2019s in (and where people trip up)<\/b>\u00a0<\/span><\/p>\n

At the time of writing, to qualify you must be:\u00a0<\/span><\/p>\n