More Banks Join the 5% Deposit Scheme – What It Means for First Home Buyers
Buying your first home in Australia can feel like a mountain to climb, especially with soaring property prices and the challenge of saving for a deposit. However, with more lenders joining the Home Guarantee Scheme (HGS), first-time buyers now have greater opportunities to step into the property market sooner—with as little as a 5% deposit and no lenders mortgage insurance (LMI).
Which Banks Have Joined the 5% Deposit Scheme?
In exciting news for first home buyers, several banks have recently joined the Home Guarantee Scheme (HGS). This expansion gives buyers access to 33 participating lenders, offering competitive loan options and improving their chances of securing the right mortgage.
The latest additions include St.George, Bank of Melbourne, ING, and BankSA, all part of the Westpac Group. These lenders bring more flexibility and choice to borrowers looking to take advantage of the scheme.
What Does the Home Guarantee Scheme Include?
The HGS is designed to help eligible buyers get into the property market faster by reducing the deposit requirements and eliminating costly LMI fees. The scheme includes:
- First Home Guarantee & Regional First Home Buyer Guarantee – Allows first-time buyers to purchase a home with only a 5% deposit and no LMI.
- Family Home Guarantee – Supports single parents to buy with just a 2% deposit, helping more Australians achieve financial security through homeownership.
With new lenders onboard, increased competition may lead to lower interest rates, making home loans more affordable for first-time buyers.
How a 5% Deposit Helps Buyers Enter the Market Sooner
For many Australians, saving a traditional 20% deposit is the biggest obstacle to homeownership. Rising living costs and increasing property prices mean that reaching this goal can take years.
Thanks to the Home Guarantee Scheme, buyers can step into the market up to four years earlier than they would otherwise. In fact, one in three first home buyers last year purchased their home using this scheme.
Even better, according to Housing Australia, participants in the program hold an average of $82,000 in home equity, proving how valuable this initiative is in helping buyers build wealth through property.
Choosing the Right Home Loan for Your Situation
With over 50 lenders offering low-deposit home loans, finding the best mortgage can be overwhelming. Whether you’re a first-time buyer, a solo parent, or self-employed, securing the right lender is critical.
At CBM Mortgages, we bring 25+ years of experience in the Australian financial services industry. Our expertise ensures you find the most suitable home loan options that match your financial situation and future goals.
Let CBM Mortgages Help You Secure the Best Home Loan
At CBM Mortgages, we specialize in guiding first home buyers through the mortgage process with expert advice and tailored solutions.
📞 Need expert guidance? Contact us today, and we’ll help you:
✅ Determine your eligibility for the low-deposit scheme
✅ Compare home loan rates to find the right lender
✅ Understand your borrowing power with our home loan calculators
🚀 Ready to buy your first home? Explore your options with our First Home Buyer Guide.
Want more insights? Download our Home Buying Guide for expert tips!
Plus read another one our blogs on First Home Buyers here
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Written By Craig McDonald 08/06/2025
