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Help for
buying a home
There are a range of initiatives in place to help you get one step closer to your home buying dreams.
Home buying support initiatives
We know it can be hard to save for a deposit, especially if you’re currently paying rent or are relying on a single income. That’s why we not only put up our hand to get involved with the Australian Government’s latest home buying support initiatives, we’ve also come up with a few initiatives of our own.
Australian 5% Deposit Scheme^
The Australian 5% Deposit Scheme helps eligible Australians buy sooner with as little as a 5% deposit, backed by the Australian Government. Eligible buyers can avoid paying Lenders Mortgage Insurance (LMI)1, helping reduce upfront costs and making home ownership more accessible.
How it works
The Government guarantees part of your loan through participating lenders. To remain eligible, you must continue to meet the Scheme requirements, including living in the property as an owner-occupier.
Eligible property types
- Houses, apartments and townhouses
- New builds and off-the-plan properties
- Vacant land and house & land packages
- Owner-occupied properties only
Eligibility criteria
You may be eligible if you:
- Are an Australian citizen or permanent resident aged 18+
- Have saved a minimum 5% deposit
- Haven’t owned property in Australia in the last 10 years
- Are buying within the Scheme’s property price caps
- Intend to live in the property as your primary residence
- Apply through a participating lender
Single Parent Scheme
Eligible single parents or legal guardians may be able to buy with just a 2% deposit. Unlike the standard Scheme, you don’t need to be a first home buyer to qualify.
Additional eligibility includes:
- At least one dependent child
- Minimum 2% deposit
- No other property ownership after settlement
- Single applicant only
Property price caps
Property purchase prices must fall within the Scheme’s price caps for the property location, including combined land and build costs for new builds.
Important information
| State | Capital City & Regional Centres* | Rest of State |
|---|---|---|
| New South Wales | $1,500,000 | $800,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
| Territory | All Areas | |
| Australian Capital Territory | $1,000,000 | |
| Northern Territory | $600,000 | |
Eligibility for the Scheme does not guarantee loan approval. You must also meet your lender’s credit and lending criteria.
*Source: firsthomebuyers.gov.au. Correct as at 1 May 2026 and is subject to change. View full list of regional centres at firsthomebuyers.gov.au
Family/Parental Guarantee
What is it?
At Community First, first home buyers can avoid paying lenders’ mortgage insurance altogether when a parent or in-law guarantees 20% of the value of their first home. Unlike handing over cash to help with a deposit, offering a 20% guarantee means you won’t have to lend or gift any money. It provides extra security for your child’s loan and alleviates the need for LMI to be obtained.
What is a guarantor?
A guarantor is someone who agrees to support a borrower’s home loan if they cannot meet their repayments. This usually involves offering an asset, such as a property or cash, as security and signing a legal guarantee agreement. The guarantor will need to sign a guarantee which becomes a legal contract.
What type of properties can I purchase?
- Houses, apartments and townhouses
- New builds and off the plan
- Vacant land and/or house and land packages
- Owner occupied and investment properties
Benefits
- A family guarantee can help first home buyers avoid paying Lenders Mortgage Insurance (LMI), potentially saving thousands of dollars and helping them buy sooner.
- Guarantors can support a borrower without needing to provide cash for a deposit, by using part of their property as security instead.
- With a guarantor’s support, borrowers may be able to purchase a home with a smaller deposit or borrow up to the full purchase price. They will still need to cover costs such as stamp duty and legal fees.
- The guarantee can be limited to a portion of the loan, such as 20% of the property value, helping reduce the guarantor’s level of exposure.
Risks
- Acting as a guarantor is a serious financial commitment that may place your own assets, including your home, at risk.
- If the borrower cannot meet their loan repayments, the guarantor may be required to repay the guaranteed amount. In some cases, this could require the sale of assets to cover the debt.
- Guarantors will need to provide personal and financial information, which may be used to assess their creditworthiness and suitability.
- Before signing, guarantors should carefully review the guarantee documents and seek independent legal and financial advice to fully understand their obligations and risks.
Guarantor Responsibilities a Readiness Checklist
Being a guarantor is significant financial commitment, and it may place assets at risk. If the borrower cannot repay the loan, the guarantor may be required to cover the guaranteed amount, including potentially selling secured assets if necessary. First home buyers and their guarantors should seek independent legal advice before proceeding.
Below is a checklist you can use when discussing with family members their readiness to be a guarantor and to help them understand what is involved. If either of you tick ‘no’ to any of the following, we encourage you to seek further information from Community First as well as seek your own independent legal advice.
- Are there likely to be any changes to the borrower’s circumstances, or yours, that may negatively affect their/your ability to meet your obligations?
- What plans may be in place to navigate these changes?
- Is the borrower likely to borrow more money in the near future?
- Do I understand how long the guarantee could last and how I can go about having it removed?
- Do I have the capacity to repay the home loan in the even the borrower cannot?
- Do you plan to sell your property or borrow against your property for your own purposes while the guarantee is still in place? Am I doing it out of my own free will? Do I feel pressured? Financial matters can feel overwhelming.
- Do you understand your obligations clearly?
Next Steps
If a family guarantee may help you purchase your first home, the guarantor will need to provide identification documents and consent to Community First’s privacy policy. Personal and financial information may be used to assess their suitability, and they will receive details about the loan application to help them make an informed decision and seek independent legal or financial advice before proceeding.
Accessing Government Schemes
You must apply for the Australian Government Schemes through a participating lender. There is a limit to the number of guaranteed loans that can be offered per financial year and Community First is on the panel of approved lenders.
Non-major lenders (that’s us) can submit applications for the Scheme until places are exhausted. You should refer to the official website for more information on eligibility criteria.
View first home buyer home loans
How to apply
We know that navigating your way through all the options available can be daunting, but we’ve been helping people with buying a home for over 60 years.
Our Mortgage Specialists can help guide you through the process as well as help you understand what costs you’ll need, how much you could afford to borrow and how to apply for the various initiatives on offer.
Contact us
A young couple’s journey
Read about how two of our members found their first time perfect home and what supports they were able to access to make it happen.
Community Advantage
To recognise some of our key community professions that work hard to serve others, we’re making it easier to buy a home with savings on LMI.
Don’t have a cash deposit?
Deposit bonds can help if you want to buy a property but don’t have immediate access to a cash deposit – but you will by the time of settlement.
Credit eligibility criteria, terms & conditions, fees & charges apply.
1 Lenders’ Mortgage Insurance applies where the loan to value ratio (LVR) exceeds 90%. Some suburb exclusions apply.