Government Assistance for Home Buyers

Buying your first home may be easier than you think. The Australian Government and some State Governments offer programs that can help eligible buyers purchase a home with a smaller deposit and lower borrowing costs.

Australian Government 5% Deposit Scheme

What is the 5% Deposit Scheme?

The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase a property with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI).

Normally, if you have less than a 20% deposit, lenders require LMI, which can cost thousands of dollars.

Under this scheme, the Australian Government provides a guarantee to the lender, allowing you to buy sooner while avoiding LMI.

Example

Property Price: $700,000

• Your Deposit (5%): $35,000
• Home Loan: $665,000
• LMI: $0 (if eligible under the scheme)

Without the scheme, LMI could potentially add tens of thousands of dollars to your costs.

Key Benefits

• Buy with only 5% deposit
• No Lenders Mortgage Insurance
• Enter the property market sooner
• Available Australia-wide through participating lenders

Help to Buy Scheme (2% Deposit)

What is Help to Buy?

Help to Buy is a shared equity program where the Australian Government contributes part of the purchase price of your home. In exchange, the Government owns a percentage share of the property.

You only need:

• A minimum 2% deposit
• Approval for a home loan from a participating lender

The Government can contribute:

• Up to 30% of the purchase price for an existing home
• Up to 40% of the purchase price for a new home

Example – Existing Home

Purchase Price: $700,000

• Your Deposit (2%): $14,000
• Government Contribution (30%): $210,000
• Home Loan Required: $476,000

Instead of borrowing $686,000, you only need a loan of $476,000, which can significantly reduce your repayments.

Example – New Home

Purchase Price: $700,000

• Your Deposit (2%): $14,000
• Government Contribution (40%): $280,000
• Home Loan Required: $406,000

Important to Understand

The Government’s contribution is not a gift.

The Government owns a percentage share of the property and shares in any increase or decrease in value. If you sell the property or refinance, the Government’s share generally needs to be repaid.

Key Benefits

• Buy with as little as 2% deposit
• Smaller home loan
• Lower monthly repayments
• Available for both new and existing homes
• Helps buyers who may not otherwise qualify

Queensland Boost to Buy Scheme

What is Boost to Buy?

The Queensland Government’s Boost to Buy Scheme helps eligible Queensland first home buyers purchase a home with a deposit as low as 2%.

The Queensland Government may contribute up to 30% of the purchase price through a shared equity arrangement.

Key Benefits

• Deposit from 2%
• Government equity contribution up to 30%
• Available for eligible Queensland first home buyers
• Can reduce the amount you need to borrow

Need Help?

At Skyline Home Loans, we can assess your eligibility for government assistance programs, compare participating lenders, and help you understand which option may suit your circumstances.

Book a free consultation today and find out how much you could borrow with as little as a 2% or 5% deposit.