Dnister Bank joins the Australian Government 5% Deposit Scheme

UAANT is pleased to share an important update from our community partner Dnister Bank. Dnister has joined the Australian Government 5% Deposit Scheme, giving eligible first home buyers another pathway towards purchasing a home with a smaller deposit.

Under the Scheme, eligible first home buyers may be able to purchase a home with a minimum 5% deposit without paying Lenders Mortgage Insurance (LMI). Eligible single parents or single legal guardians may be able to apply with a minimum 2% deposit under the relevant stream.

The Australian Government provides a guarantee to the participating lender for part of the loan. The buyer remains responsible for the home loan, repayments and associated purchasing costs.

What this could mean for first home buyers

• a minimum deposit from 5% for eligible first home buyers;
• no LMI on an eligible loan under the Scheme;
• no income caps or waiting list under the current Scheme settings;
• the option to apply alone or jointly with one other eligible person; and
• guidance from Dnister lending specialists, including support in Ukrainian.

Dnister's member announcement gives a simple illustration: a 5% deposit on a $700,000 property is $35,000. This is an illustration only. The required deposit is based on the property's assessed value, and buyers must also consider fees, duties, legal costs and other expenses.

Basic eligibility

The official Scheme criteria include being at least 18 years old and an Australian citizen or permanent resident. First home buyer applicants must generally be buying their first home or must not have owned property or land in Australia during the previous 10 years.

The property must be in Australia, fall within the price cap for its location and be used as the buyer's home rather than as an investment property. Applicants must also satisfy Dnister's lending and credit assessment requirements. Scheme eligibility does not guarantee approval for a home loan.

Because property price caps vary by location, buyers in Darwin and elsewhere in the Northern Territory should check the current cap for the property's postcode before making decisions.

Check the details and speak with Dnister

• Read Dnister Bank's 5% Deposit Scheme information
• Check your eligibility using the official Australian Government tool
• Check the property price cap for a postcode
• Call Dnister on 1800 353 041 or email loans@dnister.com.au

Dnister advises that its team can speak with customers in Ukrainian.

Important information

This article provides general information only and does not take into account your financial situation, needs or objectives. Eligibility criteria, lending criteria, fees, charges and terms and conditions apply, and all applications are subject to credit approval. Consider whether a product is appropriate for you and read the relevant Dnister disclosure documents and product terms before applying. Scheme settings may change, so confirm current information with Dnister and the official Australian Government website.