How Much Deposit Do First Home Buyers Need in Australia 2026? | QLoans.au

Get your foot in the door in 2026 with a 5% deposit or the 2% single parent stream as a first home buyer.

The Australian Government 5% Deposit Scheme (formerly known as the Home Guarantee Scheme) is designed to help Australians purchase homes with smaller deposits.

The scheme works by having the Australian Government provide a guarantee to a participating lender for a portion of the home loan. This allows eligible buyers to enter the market with a deposit as low as 5% (or 2% for single parents) without having to pay Lenders Mortgage Insurance (LMI).

Key Updates (Effective 1 October 2025)

• No Income Caps: Eligibility is no longer restricted by how much you earn.
• No Waitlists: The scheme now offers unlimited spots, allowing buyers to apply when they are ready.
• No LMI: Significant savings on upfront costs.

Who Can the Scheme Help?

1. First Home Buyers: Requires a minimum 5% deposit. Available to individuals or couples who have not owned property in Australia in the last 10 years.
2. Single Parents or Legal Guardians: Requires a minimum 2% deposit. Specifically for those with at least one dependent child, even if they have owned property previously.

How It Works (5-Step Process)

1. Eligibility: Ensure you meet the criteria (citizenship, age, property ownership status).
2. Savings: Save your minimum deposit (5% or 2%).
3. Government Guarantee: The government guarantees the lender for the gap between your deposit and the standard 20% requirement.
4. Home Loan: You secure a loan through a Participating Lender.
5. Ownership: You find a home under the applicable price caps, buy it, and move in.

Property Options

• Off-the-plan properties.
• Existing houses, townhouses, and apartments.
• House and land packages.
• Building on vacant land.