What is the 5% Deposit Scheme (No LMI)?
The "5% Deposit Scheme" is a common name for the Australian Government's First Home Buyer Guarantee (part of the Home Guarantee Scheme). It helps eligible first home buyers purchase with a minimum 5% deposit while avoiding LMI, because the Government provides a guarantee to the lender so the lender can treat the loan as lower risk. (First Home Buyers – Australian Government 5% Deposit Scheme)
In plain English: instead of waiting years to reach a 20% deposit, you may be able to buy with 5%, and keep your savings for costs like moving, furnishing, or building a buffer.
Big Changes From 1 October 2025 (More Buyers Qualify)
From 1 October 2025, the scheme expanded to remove the biggest bottlenecks that used to stop buyers from getting in:
- Unlimited places (no annual cap, no waiting list), Housing Australia
- No income caps, higher-income first home buyers can now be eligible. First Home Buyers
- Higher property price caps across Australia, including NSW. Housing Australia
This turns the scheme into a practical option for more Sydney and NSW buyers, especially professionals who were previously excluded.
NSW Property Price Caps (From 1 October 2025)
Property price caps depend on location. As published on the Government's First Home Buyers site, NSW caps are: (First Home Buyers – Property Price Caps). We'll confirm the cap for the exact suburb or postcode you're targeting.
Sydney / NSW Capital & Regional Centres
Includes Illawarra, Newcastle, Lake Macquarie
Other NSW Areas
All other NSW locations
Property Price Caps from 1 October 2025
| Location | Current Property Price Cap | Property Price Cap effective 1 October 2025 |
|---|---|---|
| NSW - capital city and regional centre | $900,000 | $1,500,000 |
| NSW - other | $750,000 | $800,000 |
| VIC - capital city and regional centre | $800,000 | $950,000 |
| VIC - other | $650,000 | $650,000 |
| QLD - capital city and regional centre | $700,000 | $1,000,000 |
| QLD - other | $550,000 | $700,000 |
| WA - capital city | $600,000 | $850,000 |
| WA - other | $450,000 | $600,000 |
| SA - capital city | $600,000 | $900,000 |
| SA - other | $450,000 | $500,000 |
| TAS - capital city | $600,000 | $700,000 |
| TAS - other | $450,000 | $550,000 |
| ACT | $750,000 | $1,000,000 |
| NT | $600,000 | $600,000 |
| Jervis Bay Territory and Norfolk Island | $550,000 | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 | $400,000 |
Regional centres: NSW (Illawarra, Newcastle, Lake Macquarie), VIC (Geelong), QLD (Gold Coast, Sunshine Coast)
Note: These changes are not effective until 1 October 2025. The Home Guarantee Scheme is currently available with existing eligibility criteria and price caps.
Price cap reminder: from 1 October 2025, higher caps apply, so more properties in Sydney and NSW will qualify. We'll confirm the cap for your suburb before you commit.
Our 5% Deposit Scheme Process
We simplify the entire process and guide you through every step to make your first home purchase smooth and stress-free
2-Minute Eligibility Check
We confirm your postcode cap, deposit path (5%/2%) and any stackable NSW benefits (e.g., FHB stamp duty relief; grant for new builds).
Lender Strategy
We select Participating Lenders that best fit your credit profile and property type.
Pre-Approval
We package your loan to leverage the Government guarantee and avoid LMI.
Contract to Settlement
We coordinate the lender submission and conditions so you can buy and move in smoothly.
Ready to Buy Your First Home with 5% Deposit?
Book a free strategy call and we'll map your eligibility, price caps, and next steps in one conversation.
Am I Eligible for the 5% Deposit Scheme?
Eligibility is based on factors like first home buyer status, residency, owner-occupier intent, deposit type, and buying within the property price cap. (First Home Buyers)
At RyRo we do an upfront eligibility map that covers:
- Whether you qualify as a first home buyer
- Your deposit position (5% minimum)
- Your target area price caps
- Lender options and servicing
- The cleanest structure to avoid LMI while staying approval-ready
Good to know: this is not a credit check, it's a strategy assessment so you know where you stand.
Single Parents: Buy With 2% Deposit (No LMI)
If you're a single parent or eligible legal guardian, you may be able to purchase with as little as a 2% deposit (and still avoid LMI) under the Family Home Guarantee pathway. (First Home Buyers – Single Parents)
We can quickly tell you:
- Whether you qualify
- What your price cap is
- Which lenders can support it
- The fastest route to pre-approval
Why Most Buyers Don't Get the Best Outcome Doing This Alone
The scheme sounds simple, but the outcomes aren't. Where buyers get stuck:
- Thinking they qualify but missing a key rule
- Shopping outside the cap
- Choosing a lender that's slow or not a good fit
- Structuring the loan in a way that hurts approval odds
- Not combining grants and concessions properly
RyRo's job is to remove the uncertainty and run the cleanest path from eligibility → pre-approval → purchase → settlement.
5% Deposit Scheme + First Home Loans Sydney: The RyRo Advantage
We help first home buyers across Sydney, Norwest, the Hills District, Parramatta, and NSW:
- Confirm your scheme eligibility and price caps
- Compare 50+ lenders for rate, policy, and approval speed
- Structure the loan to avoid LMI and reduce risk
- Coordinate grants and concessions where available
- Keep it simple, clear, and fast, with real support end-to-end
We'll map your next steps in one conversation.
What We Offer
Comprehensive 5% deposit scheme (no lmi) solutions tailored to your needs with expert guidance and competitive rates
5% deposit for first home buyers
Professional guidance and support throughout your loan journey.
2% deposit for single parents/legal guardians
Professional guidance and support throughout your loan journey.
No Lenders Mortgage Insurance (LMI)
Professional guidance and support throughout your loan journey.
No income caps from 1 October 2025
Professional guidance and support throughout your loan journey.
No waiting lists or place limits
Professional guidance and support throughout your loan journey.
Higher property price caps nationwide
Professional guidance and support throughout your loan journey.
Access to 50+ participating lenders
Professional guidance and support throughout your loan journey.
Established, new, off-the-plan properties
Professional guidance and support throughout your loan journey.
House and land packages included
Professional guidance and support throughout your loan journey.
Vacant land with building contract
Professional guidance and support throughout your loan journey.
Why Choose the 5% Deposit Scheme?
Experience the difference with our expert guidance and comprehensive support designed to help you achieve your financial goals
Buy Sooner
5% deposit instead of 20%, so enter the property market up to four times faster.
Save Thousands
No LMI payable under the scheme; often a five-figure saving.
No Income Caps
From 1 October 2025, no income caps, so more first home buyers qualify.
Higher NSW Caps
Sydney and major regional centres up to $1,500,000; other NSW areas up to $800,000.
Ready to Experience These Benefits?
Join thousands of satisfied customers who have improved their financial situation with our expert guidance
Book Free ConsultationHow the 5% Deposit Scheme Works
Simple, transparent steps to get your 5% deposit scheme (no lmi) approved with expert guidance every step of the way
Check eligibility
We confirm first home buyer status, deposit (5% or 2% for eligible single parents), and target area.
Confirm your price cap
We map the cap for your suburb/postcode so you know your budget before you shop.
Choose a participating lender
We compare 50+ lenders for rate, policy, and approval speed under the scheme.
Get pre-approval
Your loan is structured to use the Government guarantee and avoid LMI.
Find a property within cap
Purchase price and lender-assessed value must be at or below your cap.
Settle and move in
We coordinate through to settlement; you meet owner-occupier obligations.
“Once your application is in, I keep things moving through to settlement and stay in touch so you know where you stand.”
Kathryn
Settlement & Client Liaison
What Our Customers Say
Based on 340+ verified Google Reviews. Here's what our satisfied customers have to say about their experience with RyRo Loan Centre.
Vandhana Naidu
"We can't thank Sumit enough for helping us secure our first home - especially in such a tough and competitive market. He truly went above and beyond a..."
Emi Lia
"We had a great experience with Sumit and his team. We can't express enough how grateful we are to them, as they did a really splendid job! Helped us a..."
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"Working with Sumit Joshi & co was a fantastic experience. They were very professional, knowledgeable, and made the whole process stress-free. I apprec..."
SS
"I had an absolutely outstanding experience with RyRo Loan Centre and I cannot thank Sumit enough for his incredible support throughout my investment l..."
Garima Sharma
"Sumit made the entire property purchasing process smooth and stress-free. Always professional, responsive, and genuinely helpful, he went above and be..."
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"Our experience with Sumit and his team was wonderful. They guided us from start to finish in a professional and unbiased manner. They are a team of hi..."
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"It's been an amazing experience working with Sumit, he helped me through initial Mortgage loan and recently in refinancing my loan. He helped me in ev..."
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"As recent migrants from New Zealand, my wife and I were navigating the complex Australian property market for the first time, and we couldn't have ask..."
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"I had an amazing experience working with Sumit to secure a loan for my first home. From start to finish, he made the process smooth, stress-free, and ..."
Kamal Raqba
"Sumit Joshi is our trusted mortgage broker, we have used his services for the last 8 years and he has always guided us in the right direction and prov..."
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"As first-time homebuyers, we were initially unsure about which mortgage broker to choose, and we had a few lined up to discuss our needs. Sumit at RyR..."
Yash Dharva
"I had an outstanding experience working with Vijay Dhingra from RyRo loan centre from start to finish. They made the entire mortgage process smooth, s..."
Praneet Singh
"Sumit and his team were super helpful throughout the entire loan approval process. Always prompt with responses and super convenient to deal with if I..."
Sudhir Sehgal
"First of all heartiest thanks Sumit for making our journey to get loan approval so smooth and in really very comfort zone, since I am in Australia I h..."
Chloe Martirena
"I had an amazing experience working with Sumit while buying my first home! From the very beginning, he was incredibly responsive and always made time ..."
Suvidha Horn
"Thank you so much Sumit, Dean, Kathryn and the team at RyRo. You guys have been excellent and thorough professionals. Highly recommended for any home ..."
Alex
"Sumit and team gave as an amazing experience, even after we decided to back out of our first purchase , I reached out to Sumit a year or two later, he..."
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"I had an exceptional experience with RyRo Loan Centre, and I wholeheartedly recommend their services. Sumit and his team were not only highly knowledg..."
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Frequently Asked Questions
Common questions about 5% deposit scheme (no lmi) answered by our expert team
Is the 5% Deposit Scheme the same as LMI?
No. LMI is an insurance premium you pay when you borrow with a low deposit. Under this scheme, eligible buyers can purchase with 5% deposit and avoid paying LMI. Source: First Home Buyers (Australian Government).
Are there income caps?
From 1 October 2025, the scheme removed income caps. More first home buyers, including higher-income professionals, can now be eligible. Source: First Home Buyers (Australian Government).
Are there limited spots or waiting lists?
From 1 October 2025, there are unlimited places and no waiting list. Source: Housing Australia.
What are the NSW property price caps?
NSW caps from 1 October 2025: $1,500,000 for Sydney and major regional centres; $800,000 for other NSW areas. Both purchase price and lender-assessed value must be at or below the cap. Source: First Home Buyers – Property Price Caps.
Can I buy with 2% deposit?
Eligible single parents or legal guardians may be able to buy with 2% deposit (no LMI) under the Family Home Guarantee pathway. Source: First Home Buyers – Single Parents.
Can I buy an established home?
Yes, established or new, off-the-plan, house and land, or build on vacant land with a contract, subject to price caps.
Do I apply directly to Housing Australia?
No. You apply through Participating Lenders approved to offer the scheme. RyRo works with multiple participating lenders.
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