Learn how the Australian Government 5% Deposit Scheme could help eligible first home buyers reduce upfront costs

For many first home buyers, saving the deposit is one of the hardest parts of getting started.

A 20% deposit can feel out of reach when rent, bills and everyday costs are already competing for your savings. But for eligible buyers, the Australian Government 5% Deposit Scheme may help reduce the amount you need upfront.

If you are looking at buying your first home at The Avenue - Coburg, it could be worth understanding how the scheme works, what eligibility criteria may apply and what steps to take before making a decision.

What is the 5% Deposit Scheme?

The Australian Government 5% Deposit Scheme helps eligible first home buyers purchase a home with a minimum 5% deposit, without paying Lenders Mortgage Insurance. Usually, buyers with less than a 20% deposit may need to pay Lenders Mortgage Insurance, also known as LMI. This is a cost that protects the lender if a borrower cannot repay their loan.

Under the scheme, the Australian Government guarantees part of the loan. This may help eligible buyers avoid LMI and reduce upfront costs, making it easier to enter the market sooner.

Why this matters for first home buyers

For many buyers, the challenge is not necessarily making repayments. It is saving a large enough deposit while still paying rent.

The 5% Deposit Scheme may help reduce that upfront savings barrier, giving eligible buyers another pathway to explore when planning their first home purchase.

It does not remove the need for loan approval, and you will still need to meet lender requirements, scheme eligibility criteria and any other costs involved in buying. But it can be a helpful option to understand early, especially if saving a full 20% deposit has been one of the main things holding you back.

What this could mean at The Avenue

At The Avenue, eligible first home buyers may be able to explore the 5% Deposit Scheme alongside other support pathways, depending on their personal circumstances.

This could include looking at available apartments, understanding current pricing, checking what deposit amount may be required and asking how government support pathways could apply to your purchase.

Because every buyer’s situation is different, the best next step is to check your eligibility and speak with a participating lender, mortgage broker or finance professional before making any decisions.

Want to understand your options?

The Australian Government eligibility tool is a helpful first step if you want to see whether the 5% Deposit Scheme could apply to you. Once you have checked your eligibility, you can book a private appointment with The Avenue sales team to discuss available apartments, current pricing and what buying at The Avenue could look like.

Learn more about the Australian Government 5% Deposit Scheme

Check your 5% Deposit Scheme eligibility

Book a private appointment