5% Deposit Scheme for Public Servants

Public Home Loans helps public servants across Australia access the Australian Government 5% Deposit Scheme. The scheme is open to all eligible home buyers, and for public servants it can be a practical way to buy or build a home sooner with a smaller deposit and no lenders mortgage insurance (LMI). Eligible public servants who are first home buyers can buy with a deposit as low as 5%, and public servants who are single parents or legal guardians with a deposit as low as 2%. Housing Australia administers the scheme on behalf of the Australian Government, and public servants apply through a participating lender as part of their home loan application.

How the 5% Deposit Scheme Works for Public Servants

Home buyers usually need a 20% deposit to avoid LMI. Under the scheme, the Australian Government backs part of your home loan with your lender, so eligible public servants can borrow more than 80% of the property's value without paying LMI. For first home buyers, Housing Australia backs up to 15% of the property value, and for single parents up to 18%. As a public servant, you are still responsible for all loan costs and repayments.

Since 1 October 2025, the scheme has:

• Unlimited places - There is no annual cap on places and no waiting list, so public servants can apply when they're ready to buy.

• No income caps - Your income doesn't affect your eligibility, which opens the scheme to public servants at every salary level.

• Higher property price caps - Price caps were increased across all states and territories.

Which Public Servants Are Eligible?

Public servants buying their first home must:

• be an Australian citizen or permanent resident, aged 18 or over

• have saved a deposit of at least 5% of the property value

• be a first home buyer, or not have owned property or land in Australia in the last 10 years

• buy a home priced at or below the price cap for its location

• plan to live in the home as an owner-occupier (investment properties are not eligible)

• take out an owner-occupier home loan with principal and interest repayments from a participating lender, for up to 30 years (plus up to three years to build a new home)

• apply on their own or jointly with one other person, such as a partner, friend or family member

Public servants who are single parents or legal guardians must:

• be an Australian citizen or permanent resident, aged 18 or over

• have saved a deposit of at least 2% of the property value

• be a single parent or single legal guardian of one or more dependent children

• not have any other property interest once the new home settles

• buy a home priced at or below the price cap for its location

• plan to live in the home as an owner-occupier

• take out an owner-occupier home loan with principal and interest repayments from a participating lender

• apply on their own, as joint applications are not accepted

To be considered single, you can't have a spouse or de facto partner. If you're separated but not divorced, you are not considered single for the scheme. Public servants applying as single parents don't need to be first home buyers. All public servants also need to meet the participating lender's credit and lending criteria, and being eligible for the scheme doesn't mean a lender will approve your loan.

What Can Public Servants Buy?

Public servants can use the scheme to buy a new or existing house, townhouse or apartment, a house and land package, an off-the-plan property, or vacant land with a building contract. Both the purchase price and the lender's valuation of the home must be at or below the price cap. If you're buying land and building under separate contracts, the land price plus the build cost must come in under the cap.

Property Price Caps

Property price caps vary by state and location. The caps that have applied since 1 October 2025 are:

• New South Wales - $1,500,000 in Sydney and regional centres, and $800,000 in other areas

• Victoria - $950,000 in Melbourne and Geelong, and $650,000 in other areas

• Queensland - $1,000,000 in Brisbane and regional centres, and $700,000 in other areas

• Western Australia - $850,000 in Perth, and $600,000 in other areas

• South Australia - $900,000 in Adelaide, and $500,000 in other areas

• Tasmania - $700,000 in Hobart, and $550,000 in other areas

• Australian Capital Territory - $1,000,000 in all areas

• Northern Territory - $750,000 in Darwin, and $600,000 in other areas

Regional centres are the Central Coast, Coffs Harbour and Grafton, Illawarra, Mid North Coast, Richmond-Tweed, and Newcastle and Lake Macquarie in NSW, and the Gold Coast and Sunshine Coast in Queensland. Some suburbs have more than one postcode with different caps, so public servants should always check the cap for the exact suburb and postcode using the Postcode Search Tool on the First Home Buyers website.

How Public Servants Apply

Public servants can't apply directly to Housing Australia. Your application is made through a participating lender as part of your home loan, and our brokers can help you compare participating lenders and manage the process. When you apply, you'll need to provide your full name, date of birth, Medicare number (or PMKeyS number for Defence personnel), proof of citizenship or residency and a completed Home Buyer Declaration form. Public servants applying as single parents also need documents showing they are a single parent or legal guardian of a dependent child.

Once you are pre-approved under the scheme, you have 90 days to find a home and sign a contract of sale, so it's worth having your finances and property search well organised before you apply. Learn more about getting loan pre-approval.

Ongoing Obligations

To stay covered by the scheme, public servants need to keep meeting its conditions, including living in the property as an owner-occupier. If you stop meeting them, the government backing may no longer apply, and your lender may require you to pay LMI or other costs.

Is the Scheme Right for You as a Public Servant?

A smaller deposit means a larger loan, which means higher repayments and more interest over the life of the loan. Our brokers can help public servants weigh the scheme against other options, such as saving a larger deposit or, if your profession is covered, an LMI waiver for public servants, which may allow investment loans or larger loan amounts that the scheme doesn't.

Public Home Loans invites public servants to explore the 5% Deposit Scheme and take the next step towards owning their own home. Whether you're a public servant buying your first home, returning to the property market after more than 10 years, or buying as a single parent, our team can help you check your eligibility and find a participating lender that suits your situation.