How to use the First Home Guarantee calculator
- 1 Choose where you are buying.
- 2 Enter the property price.
- 3 Enter your deposit.
- 4 Enter the interest rate and loan term, then read the result.
Worked example
An $800,000 home in Sydney with a $40,000 deposit. The price is under the $1.5 million cap and the deposit is exactly 5%, so it qualifies. The loan is $760,000 (95% LVR), which would otherwise attract LMI of around $32,680. At 6% over 30 years the repayment is $4,556.58 a month. A $1 million home in Melbourne would not qualify, because the cap there is $950,000.
Using the 5% Deposit Scheme
- Check the price cap for your exact postcode.
- Apply through a participating lender or broker.
- Add state grants and stamp duty concessions.
- Get pre-approval before you bid.
Compare with paying LMI in the LMI Calculator, work out stamp duty with the Stamp Duty Calculator, and check your loan size with the Borrowing Power Calculator.
Features
Price caps
Every area's cap from October 2025, including Darwin's $750,000 from July 2026.
LMI saved
Estimates the lenders mortgage insurance the guarantee avoids.
Repayments
Monthly repayment and total interest.
When to use it
First home buyers
See what you can buy with 5% down. Estimate your borrowing with the Borrowing Power Calculator.
Stamp duty
Add state duty and first home concessions with the Stamp Duty Calculator.
Saving a deposit
Use the FHSS Calculator to save through super.
Comparing with LMI
See the cost without the scheme in the LMI Calculator.
Related Home and Auto tasks
Frequently asked questions
What is the 5% Deposit Scheme?
The Australian Government 5% Deposit Scheme, run by Housing Australia, lets eligible first home buyers buy with a 5% deposit without paying lenders mortgage insurance. The government guarantees up to 15% of the loan to the lender.
Are there income limits?
No. Income caps were removed from 1 October 2025, and there are no limits on the number of places.
What are the price caps?
From 1 October 2025: $1.5 million in Sydney, Newcastle and Illawarra; $950,000 in Melbourne and Geelong; $1 million in Brisbane, the Gold Coast, Sunshine Coast and the ACT; $900,000 in Adelaide; $850,000 in Perth; $700,000 in Hobart; and $750,000 in Darwin from 1 July 2026. Regional areas have lower caps.
Who is eligible?
Australian citizens or permanent residents aged 18 or over who have not owned property in Australia in the past 10 years, buying a home to live in, through a participating lender.
How much LMI does it save?
Often tens of thousands of dollars. On a $760,000 loan at 95% LVR, LMI could be around $30,000, depending on the lender and insurer.
Can I combine it with a state grant?
Usually yes. You can often use the scheme with your state's First Home Owner Grant and stamp duty concessions.
Do I still need to pay stamp duty?
Yes, unless your state gives a concession. Check with the Stamp Duty Calculator.
Can single parents use a smaller deposit?
Yes. Eligible single parents and legal guardians can buy with a 2% deposit through the Family Home Guarantee stream.
Is approval guaranteed?
No. You still need to meet the lender's credit and serviceability checks.
Can I use the scheme for a new build or land?
Yes. You can buy an existing home, a house and land package, or land with a contract to build, as long as the total price is under the cap and you meet the lender's rules.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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