Government schemes

The 5% Deposit Scheme in Queensland

The Australian Government 5% Deposit Scheme lets eligible first home buyers purchase with a deposit from 5% without paying lenders mortgage insurance (LMI). Eligible single parents and guardians may be able to buy with a deposit from 2%.

The government guarantees part of your loan to a participating lender. You still need to meet the lender's normal credit criteria.

Book a complimentary appointment

How the scheme works

Normally, borrowing more than 80% of a property's value means paying LMI. Under the scheme, the government guarantees the gap between your deposit and 20% of the property's value (up to 15%, or up to 18% for eligible single parents and guardians). Because the lender is covered, it doesn't charge LMI.

The guarantee generally stays in place until your loan falls below 80% of the property's value. Learn more about lenders mortgage insurance.

Who's eligible?

Australian citizens and permanent residents aged 18 or over
People buying a home to live in, not an investment
First home buyers, or people who haven't owned property in Australia in the past 10 years
Single parents and guardians with at least one dependent child (2% deposit option)
Buyers using a participating lender

Income caps were removed in October 2025, so your income no longer affects eligibility. Lenders still check that you can afford the loan.

Move-in rules

For an existing home, you need to move in within six months of settlement and keep living there while the guarantee applies. Building a new home or buying off the plan has its own timeframes for starting, finishing and moving in.

Combine it with Queensland support

You may be able to use the scheme alongside the Queensland First Home Owner Grant on an eligible new home and the first home transfer duty concessions. See our guides to first home buyer grants in Queensland and stamp duty for first home buyers.

Things to weigh up

A smaller deposit means a bigger loan and more interest over time
You'll still need money for stamp duty (unless a concession applies), legal fees and other buying costs
Not every lender takes part. Each participating lender also sets its own credit criteria
If the property is above the cap, a family guarantee may be an alternative

We check your eligibility, compare participating lenders on our panel and handle the application from start to settlement. In most cases there's no broker fee to pay.

Frequently asked questions

Do I have to be a first home buyer?

Generally yes, or you must not have owned property in Australia in the past 10 years. Single parents and guardians using the 2% option have separate rules.

Are there income limits?

Not any more. Income caps were removed in October 2025, although lenders still check that you can afford the loan.

Can I use the scheme to buy an investment property?

No. You must buy the property to live in and keep living there while the guarantee applies.

Can I use the scheme to build?

Yes, for a house and land package or land with a building contract, as long as you meet the build and move-in timeframes.

See if you're eligible

We'll check the scheme rules against your situation and explain your options.

Get in touch

Or call us on (07) 3194 0888