5% Deposit Scheme for Nurses
Discover the 5% Deposit Scheme for Nurses to Buy or Build Your Home Sooner
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The Australian Government 5% Deposit Scheme may help nurses and midwives buy a home sooner with a smaller deposit and no Lenders Mortgage Insurance (LMI). Eligible first home buyers may be able to purchase with a minimum 5% deposit, while eligible single parents and single legal guardians may be able to purchase with as little as 2%. At Nurse Loans, our Finance and Mortgage Brokers help nurses understand whether the scheme suits their situation and compare it with other options, such as LMI waivers for nurses.
The scheme is administered by Housing Australia. Instead of the borrower paying LMI, Housing Australia backs up to 15% of the property value for first home buyers, or up to 18% for eligible single parents and single legal guardians. This means you may not need to save the full 20% deposit that lenders usually require to avoid LMI.
From 1 October 2025, the scheme was expanded and simplified. There are now no income caps and no limit on the number of places available, so eligible buyers can apply at any time through a Participating Lender. Property price caps were also increased across the country, and the separate regional stream was brought into the main scheme, so regional buyers now apply as first home buyers or as single parents and legal guardians, depending on their circumstances.
To be eligible, you generally need to:
Be an Australian citizen or permanent resident aged 18 or over.
Be a first home buyer, or not have owned property in Australia in the last 10 years. Eligible single parents and single legal guardians do not need to be first home buyers, but cannot keep another property interest at settlement.
Buy a home to live in, not an investment property.
Apply for a principal and interest loan through a Participating Lender, on your own or with one other person.
Stay within the property price cap for the location you are buying in.
The scheme is not restricted by nursing registration type, so registered nurses, enrolled nurses, nurse practitioners and midwives may all be eligible if they meet the criteria above.
Property price caps depend on where you buy. As examples, the cap is $1,500,000 in Sydney and some major NSW regional centres, $800,000 for other parts of regional NSW, $950,000 in Melbourne and $1,000,000 in Brisbane. Both the purchase price and the property's value need to stay at or below the cap. Caps for every location can be checked using the Housing Australia postcode search tool, and your broker can confirm which cap applies to the property you are considering.
The scheme may be used 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 separate building contract. Where you are building on vacant land, the combined land price and build cost needs to fall within the price cap.
The 5% Deposit Scheme may be used alongside state-based support such as the First Home Owner Grant and stamp duty concessions, as well as the First Home Super Saver Scheme. The Help to Buy Scheme is a separate federal program with its own eligibility rules, and the two schemes cannot be used together for the same purchase. Your broker can help you work out which combination may suit your deposit, income and the property you plan to buy.
Registered nurses and midwives earning $90,000 or more may also be able to access an LMI waiver at select lenders, allowing a purchase with a 10% deposit and no LMI. An LMI waiver is a lender policy with no government price caps, while the 5% Deposit Scheme needs a smaller deposit and has no income requirement. Enrolled nurses are generally not eligible for lender LMI waivers, which makes the 5% Deposit Scheme one of the main no-LMI pathways for enrolled nurses buying a home.
Our Finance and Mortgage Brokers work with nurses and midwives across Australia and have access to 70+ banks and lenders. We can confirm your eligibility, check the price cap for your area, identify which Participating Lenders suit your income structure, including shift allowances and overtime, and manage the application through to settlement. Explore our home loans for nurses or first home buyer loans for nurses to learn more.
Scheme rules, price caps and eligibility criteria can change, so speak with one of our brokers to confirm the current details before you make any decisions.
The Australian Government 5% Deposit Scheme may allow eligible nurses to purchase a home with a 5% deposit without paying LMI. Housing Australia backs up to 15% of the property value, which covers the gap between your deposit and the 20% lenders usually require. The loan is arranged through a Participating Lender, and the property must fall within the price cap for its location.
The 5% pathway is open to first home buyers and to people who have not owned property in Australia in the last 10 years. Eligible single parents and single legal guardians may be able to purchase with as little as a 2% deposit, and do not need to be first home buyers, although they cannot keep another property interest at settlement.
The 5% Deposit Scheme may allow a purchase with a 5% deposit and no LMI, with no income cap, but property price caps apply. An LMI waiver is offered by select lenders and generally requires a 10% deposit and a minimum income, often $90,000 or more, but is not subject to government price caps. The more suitable option may depend on your deposit, income, role and the property you plan to buy.
Enrolled nurses may be eligible for the 5% Deposit Scheme if they meet the general criteria, such as citizenship or residency, ownership history and the property price cap. The scheme does not restrict eligibility by nursing registration type, which may make it a useful pathway for enrolled nurses who are not eligible for lender LMI waivers.
From 1 October 2025, there is no income cap for the 5% Deposit Scheme. Lenders will still assess your income and expenses to confirm you can afford the loan, so your borrowing capacity will depend on your overall financial position.
Eligible single parents and single legal guardians may be able to buy with a 2% deposit under the 5% Deposit Scheme. The separate Help to Buy Scheme may also allow eligible buyers to purchase with a 2% deposit, with the government contributing an equity share, although income limits apply and it cannot be combined with the 5% Deposit Scheme for the same purchase.
From 1 October 2025, there is no limit on the number of places available under the 5% Deposit Scheme, so eligible buyers can apply at any time through a Participating Lender.
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Thea Edwards
Nick and the team were so lovely. Professional, genuine, responsive and easy to deal with. Would highly recommend.
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simon preshaw
Nick and the team were a pleasure to work with. They answered all of my questions and if they weren't immediately available, they were always quick to call me back.
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sarah ander
As a first home buyer, Carl and the team at Azura were incredibly helpful throughout the whole process. They made everything feel straightforward and were always there to answer any questions along the way. I’ve already recommended them to friends and would highly recommend them to anyone looking to get a mortgage!
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Alannah Paige
I am a first home buyer and had Carl as my mortgage broker. He worked diligently to follow up any issues or questions I had and made the process as smooth as it could. I highly recommend! Thank you Carl.
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Shaun Cunningham
As a founder, getting a mortgage requires a couple more hoops to jump through, which is why I couldn't recommend Nick O'Sullivan and the Azura team more highly. Not only were they able to offer a seamless process, but Nick was also patient with us as we changed our minds about when to buy (over a period of years!). The truth is anyone can approach a bank and get a mortgage, but when things don't go perfectly (e.g. abrupt government changes), that's when you want a pro on your team like Nick.
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Van Tran
Nick and the team at Azura Financial exceeded our expectations at every step. Their guidance was clear, their expertise was evident, and they handled every financial detail with care — giving us complete peace of mind throughout the process. We couldn't have asked for a better team by our side. Thank you very much, V&V.
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Philip Woods
Carl and team were absolutely impressive with their attentiveness to answering questions no matter how stupid they were. The urgency they put into attending to timelines and requests was superb. I would recommend them without hesitation.
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Nick was amazing to work with. He's easygoing, quick to reply, and genuinely a very competent broker. He made my loan possible and secured a great deal for me. Highly recommend:)
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Carina
Nick O’Sullivan helped me with my first investment property purchase last year. As it was my first time, I had plenty of questions, but he was always happy to help and made the whole process seamless. I recently used Nick again to refinance my loan and secure a great interest rate, and once again everything was handled smoothly and efficiently. I highly recommend Nick and his team and look forward to working with them again in the future.
Under the Australian Government's Home Guarantee Scheme, eligible nurses can purchase a property with a 5 percent deposit without paying LMI. The government acts as guarantor for a portion of the loan. Annual place limits apply and not all lenders participate in the scheme.
The Home Guarantee Scheme includes streams for first home buyers and for other eligible purchasers including previous homeowners who meet specific re-entry criteria. Eligibility depends on the stream applied for and the applicant's ownership history.
The Home Guarantee Scheme requires a 5 percent deposit and is subject to property price caps and place limits. An LMI waiver through a lender such as Westpac requires a 10 percent deposit and a minimum $90,000 gross income, but is not subject to the same place limits. The most suitable option depends on the nurse's deposit size, income and property purchase price.
Enrolled nurses may qualify for the Home Guarantee Scheme provided they meet the income and eligibility requirements. The scheme does not restrict participation by nursing registration type in the same way that lender LMI waiver programs do.
The Australian Government revised the income conditions for the Home Guarantee Scheme with changes effective from October 2025. Current income thresholds should be verified with Housing Australia or a licensed credit adviser at the time of application.
The Australian Government has announced a Help to Buy shared equity scheme that would allow eligible borrowers to purchase with a smaller deposit, with the government taking an equity stake in the property. Availability, income thresholds and eligibility conditions for this scheme should be confirmed with Housing Australia as scheme details were subject to change at the time this data was compiled.
The Home Guarantee Scheme releases a set number of places each financial year across its various streams. Places are limited and are allocated on a first-come, first-served basis through participating lenders. Availability varies each year and should be confirmed with Housing Australia or a participating lender.
Trustee for the O'Sullivan Family Trust ABN: 29 235 649 437, Credit Representative #482294 and is authorised under Australian Credit Licence 389328.
Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Names & Locations of users have been changed to protect their privacy and are illustrative only.
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