Can self-employed borrowers access the 5% deposit home guarantee scheme?
- Jenny Fentino
- Sep 2
- 2 min read
One of the most common questions we're asked is, can self-employed borrowers access the Home Guarantee Scheme, which allows first time buyers to use a 5% deposit without paying mortgage insurance.
The Federal Government’s Home Guarantee Scheme is opening doors for buyers with small deposits. Self-employed borrowers are not locked out. In fact, the pathway has become clearer as major lenders update their policies.
Participating Banks
CBA, NAB, and Westpac are all participant banks in the scheme. Each has its own approach to income assessment for business owners. Over the past year, those policies have improved.
Banks now recognise that self-employed income comes in many forms. They are more willing to work with accountants’ letters, shorter trading histories, and alternative forms of verification. This makes assessments faster and more practical.
It is important to note that the deposit guarantee scheme does not override income rules. It sits on top. Lenders still need to be comfortable with serviceability. The good news is that policies for self-employed borrowers are no longer as rigid as they once were.
Genuine Savings & Business Liabilities
Genuine savings remain a consistent requirement. Most lenders will want to see proof that the deposit has been built up through a borrower’s own funds or discipline. The scheme helps reduce the size of the deposit, but the principle of genuine savings is the same.
One area of difference across banks is how they treat business liabilities. Some are more flexible when it comes to debts inside a company. If a lender does not apply every liability in the business against a borrower’s personal capacity, the outcome can be more favourable. This means stronger borrowing power for some clients.
For self-employed Australians buying for the first time, the scheme is not just an entry point but a chance to leverage improving bank policies. With the right lender, the combination of government support and evolving assessment rules can turn a long-term dream into an immediate reality.