Buying a home with a 5% deposit - scheme to offer more spots under 2021 Budget

An additional 10,000 places under the First Home Loan Deposit Scheme (FHLDS) for new builds will become available from July 1 following an announcement made as part of the 2021 Federal Budget.
This is the second allotment of places released under the New Homes Guarantee version of the Federal Government’s FHLDS which will be available to eligible first home buyers specifically looking to build or purchase a new home.
It adds to the previously announced addition of 10,000 places for existing home purchases under the scheme that will also become available from July 1.
The scheme is designed to help first time buyers with low deposits (as low as 5%) purchase property without needing to take out lenders mortgage insurance.
Instead, the government will ‘guarantee’ home loans used for the purchase which can be taken out through 33 participating lenders including major banks like the Commonwealth Bank and NAB as well as a number of customer owned institutions.
“We commend the Government for embedding competition into the successful FHLDS. Ensuring the strong representation and prioritisation of customer owned lenders has led to greater choice and outcomes for consumers,” said COBA chief executive, Michael Lawrence, on the further expansion of the scheme.
Further budget measures for home buyers
In addition to the continuation of the First Home Loan Deposit Scheme, the 2021 Federal Budget will also target home buyers with the rollout of the Family Home Guarantee scheme and a beefed up First Home Super Saver Scheme (FHSSS).
The new Family Home Guarantee initiative is aimed at assisting single parents get into the property market with a home loan deposit as low as 2%.
Like the FHLDS, the Federal Government will play guarantor under the new scheme, allowing eligible applicants to borrow with a deposit under 20% without having to take out lenders mortgage insurance.
An initial 10,000 places will be available under the scheme which will start on July 1, 2021 and run for four years.
Treasurer Josh Frydenberg also announced that voluntary super contributions made under the First Home Super Saver Scheme (FHSSS) would be expanded from the current maximum of $30,000 to $50,000.
The scheme allows prospective first home buyers to save up for a deposit by making voluntary contributions to their superannuation which can then be pulled out later on.
RELATED: Budget 2021: Low and middle income tax breaks expected for another year
For more of a breakdown on the 2021-22 Federal Budget, including the housing measures above, check out the latest episode of The Finance Burrito podcast!
Or if you're on the hunt for your first property then head on over to our first home buyer comparison tables to compare a range of home loan options, or check out some of the hot offers in the table below.
-
Promoted
Mozo experts choice awards won:
- Low Cost Home Loan - 2025
Unloan Variable Home Loan
- Owner occupier
- Principal & Interest
- 20% min deposit
- Redraw available
- Interest rate
-
5.74
%
p.a.
Variable
- Comparison rate
-
5.65
%
p.a.
- Initial monthly repayment
-
$2,915
- Built by CommBank
- The first home loan with an increasing discount (conditions apply)
- No application or banking fees
- interest rate
-
5.74% p.a. (5.65% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
-
- Other benefits
-
Rate automatically discounted by 0.01% p.a. every year up to a maximum discount of 0.30% p.a..
- Special Offers
-
-
Read reviews and learn more about Unloan home loans
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Promoted
Basic Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- 30% min deposit
- Redraw available
- Interest rate
-
5.39
%
p.a.
Fixed 2 years
- Comparison rate
-
5.82
%
p.a.
- Initial monthly repayment
-
$2,805
- No ongoing fees
- Free redraw from your loan using Macquarie Online.
- No application or account management fees
- interest rate
-
1 year - 5.49% p.a. (5.87% p.a. comparison rate)
2 years - 5.39% p.a. (5.82% p.a. comparison rate)
3 years - 5.39% p.a. (5.77% p.a. comparison rate)
4 years - 5.59% p.a. (5.81% p.a. comparison rate)
5 years - 5.59% p.a. (5.78% p.a. comparison rate)
- Fixed loan revert rate
-
5.89% p.a.
- Upfront fees
-
$350.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$400.00
- Package
-
-
- Maximum loan to value ratio
-
70.00%
- minimum borrowing amount
-
$150,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Monthly
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about Macquarie home loans
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Promoted
Mozo experts choice awards won:
- First Home Buyer Loan - 2025
Variable Home Loan 90
- Owner occupier
- Principal & Interest
- 10% min deposit
- Offset available
- Redraw available
- Interest rate
-
5.79
%
p.a.
Variable
- Comparison rate
-
5.83
%
p.a.
- Initial monthly repayment
-
$2,931
- No monthly or ongoing fees
- Option to add an offset for 0.10% p.a.
- interest rate
-
5.79% p.a. (5.83% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$530.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
90.00%
- minimum borrowing amount
-
$50,000
- maximum borrowing amount
-
$2,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$0.00
- Offset account
-
yes
- Split account
-
yes
- Other restrictions
-
Offset sub-account available for additional +0.10%. $300 discharge fee and $250 discharge documentation fee applicable if loan doesnt go to full term.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about loans.com.au home loans
Go to site -
Promoted
Budget Home Loan
- Owner occupier
- Principal & Interest
- 20% min deposit
- Redraw available
- Cashback
- Interest rate
-
5.79
%
p.a.
Variable
- Comparison rate
-
5.82
%
p.a.
- Initial monthly repayment
-
$2,931
- RATE CUT NOW LIVE!
- Get up to $4,000 cashback (T&Cs apply)
- Split loan available
- interest rate
-
5.79% p.a. (5.82% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$350.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
The $449 application fee is waived for <80% LVR Owner Occupier Principal and Interest loans.
- Special Offers
-
$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
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Promoted
Neat Home Loan
- Owner occupier
- Principal & Interest
- 40% min deposit
- Redraw available
- Interest rate
-
5.84
%
p.a.
Variable
- Comparison rate
-
5.86
%
p.a.
- Initial monthly repayment
-
$2,947
- Free extra repayments
- Easy redraw facility
- No annual fee to pay
- interest rate
-
5.84% p.a. (5.86% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$250.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$300.00
- Package
-
-
- Maximum loan to value ratio
-
60.00%
- minimum borrowing amount
-
$80,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
If the valuation is over $360, ubank will cover the first $360. Home loans with a term of greater than 30 years will only be available for owner-occupied P&I 80% LVR purchase applications.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about ubank home loans
Go to site
-
Basic Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- 30% min deposit
- Redraw available
- Interest rate
-
5.39
%
p.a.
Fixed 2 years
- Comparison rate
-
5.82
%
p.a.
- Initial monthly repayment
-
$2,805
- No ongoing fees
- Free redraw from your loan using Macquarie Online.
- No application or account management fees
- interest rate
-
1 year - 5.49% p.a. (5.87% p.a. comparison rate)
2 years - 5.39% p.a. (5.82% p.a. comparison rate)
3 years - 5.39% p.a. (5.77% p.a. comparison rate)
4 years - 5.59% p.a. (5.81% p.a. comparison rate)
5 years - 5.59% p.a. (5.78% p.a. comparison rate)
- Fixed loan revert rate
-
5.89% p.a.
- Upfront fees
-
$350.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$400.00
- Package
-
-
- Maximum loan to value ratio
-
70.00%
- minimum borrowing amount
-
$150,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Monthly
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about Macquarie home loans
Go to site -
Fixed Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- 5% min deposit
- Redraw available
- Cashback
- Interest rate
-
5.69
%
p.a.
Fixed 2 years
- Comparison rate
-
6.00
%
p.a.
- Initial monthly repayment
-
$2,899
- Get up to $4,000 cashback (T&Cs apply)
- Up to 12 months repayments in advance without penalties
- Split loan available
- interest rate
-
1 year - 5.89% p.a. (6.05% p.a. comparison rate)
2 years - 5.69% p.a. (6.00% p.a. comparison rate)
3 years - 5.69% p.a. (5.98% p.a. comparison rate)
4 years - 5.89% p.a. (6.03% p.a. comparison rate)
5 years - 5.89% p.a. (6.03% p.a. comparison rate)
- Fixed loan revert rate
-
5.99% p.a.
- Upfront fees
-
$799.00
- Ongoing fees
-
$6.00 monthly
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
- Special Offers
-
$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
Go to site -
Mozo experts choice awards won:
- Low Cost Home Loan - 2025
Unloan Variable Home Loan
- Owner occupier
- Principal & Interest
- 20% min deposit
- Redraw available
- Interest rate
-
5.74
%
p.a.
Variable
- Comparison rate
-
5.65
%
p.a.
- Initial monthly repayment
-
$2,915
- Built by CommBank
- The first home loan with an increasing discount (conditions apply)
- No application or banking fees
- interest rate
-
5.74% p.a. (5.65% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
-
- Other benefits
-
Rate automatically discounted by 0.01% p.a. every year up to a maximum discount of 0.30% p.a..
- Special Offers
-
-
Read reviews and learn more about Unloan home loans
Go to site -
Mozo experts choice awards won:
- Low Cost Home Loan - 2025
Simple Home Loan Variable
- Owner occupier
- Principal & Interest
- 40% min deposit
- Redraw available
- Interest rate
-
5.74
%
p.a.
Variable
- Comparison rate
-
5.74
%
p.a.
- Initial monthly repayment
-
$2,915
- No application, ongoing or monthly fees
- Make additional repayments at any time
- Access your money via internet banking at any time
- interest rate
-
5.74% p.a. (5.74% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$175.00
- Package
-
-
- Maximum loan to value ratio
-
60.00%
- minimum borrowing amount
-
$150,000
- maximum borrowing amount
-
$3,500,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$0.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Valuation and legal fees covered up to $1,000. Anything above this charged at cost.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about First Option Bank home loans
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OMG Home Loan
- Owner occupier
- Principal & Interest
- 40% min deposit
- Redraw available
- Interest rate
-
5.74
%
p.a.
Variable
- Comparison rate
-
5.77
%
p.a.
- Initial monthly repayment
-
$2,915
- No ongoing annual fees
- Pre-approval valid for 3 months
- interest rate
-
5.74% p.a. (5.77% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$300.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$395.00
- Package
-
-
- Maximum loan to value ratio
-
60.00%
- minimum borrowing amount
-
$20,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$0.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about BCU Bank home loans
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Your selected home loans
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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