Resimac Joins Australia's 5% Deposit Home Loan Scheme — What First Home Buyers Need to Know About Non-Bank Lender Access

Key takeaway: Non-bank lender Resimac has joined Australia's government-backed 5% deposit home loan scheme, giving eligible first home buyers access to an expanded pool of lenders — including non-bank options — as housing affordability remains under pressure in late 2026.

Why Resimac Joining the Scheme Is Significant

Australia's government-backed 5% deposit home loan scheme (part of the Home Guarantee Scheme administered through Housing Australia) allows eligible first home buyers to purchase a property with just a 5% deposit, without paying Lenders Mortgage Insurance (LMI). Historically, the scheme has been dominated by the major banks.

Resimac's entry as a participating non-bank lender expands the choices available to eligible borrowers through the broker channel. This is significant for buyers who prefer working with non-bank lenders, or whose circumstances do not align well with major bank lending criteria — even when they meet the government's eligibility rules.

With Australia's cash rate at 4.60% (RBA, September 2026) and property values falling for a sixth consecutive month (CoreLogic, September 2026), the dynamics for first home buyers have shifted: prices may be softening, but the cost of holding a mortgage has increased sharply.

What the 5% Deposit Scheme Actually Covers

The scheme allows eligible first home buyers to purchase with a 5% deposit, with the government guaranteeing up to 15% of the loan value to avoid the need for LMI. This removes a significant upfront cost that can run into the tens of thousands of dollars depending on the property price.

Eligibility criteria apply, typically including income caps, property price thresholds that vary by state and territory, and a requirement that it be the buyer's first property. The scheme has limited places each financial year, and not all applicants will qualify.

Resimac's participation means that eligible borrowers now have the option to apply through a non-bank lender — which can offer a different underwriting approach, particularly for borrowers with unusual employment histories, multiple income streams, or other non-standard features.

The Non-Bank Advantage for Eligible First Home Buyers

Non-bank lenders like Resimac often bring greater flexibility to the assessment process compared with the major banks. They may be willing to look more closely at a borrower's total financial picture — including the stability of their employment, the trajectory of their income, or the strength of their deposit savings relative to their earnings history.

For first home buyers who qualify for the scheme but have encountered difficulty with major banks for other reasons, a non-bank lender on the scheme panel provides a legitimate alternative path forward.

"The expansion of non-bank lenders into government-backed schemes reflects a broader shift: more Australians are recognising that their best lending option may not be with a big four bank."

What About Buyers Who Don't Qualify for the Scheme?

Not every first home buyer — or every property — will meet the scheme's eligibility rules. Buyers who exceed the income caps, are purchasing above the price threshold, or are self-employed with complex income documentation may not qualify, regardless of their financial strength.

For these borrowers, MPFG Capital's range of home loan products provides an alternative path. Whether through Alt Doc lending for self-employed borrowers, or flexible structuring for buyers with non-standard situations, non-bank lenders continue to serve those that government schemes and major banks cannot accommodate.

FAQ

Who is eligible for Australia's 5% deposit home loan scheme in 2026?

Eligibility for the Home Guarantee Scheme includes being a first home buyer, meeting income thresholds (which differ for individuals versus couples), and purchasing below the property price cap in your state or territory. The scheme has limited places per financial year and applications are processed by participating lenders including, now, Resimac. Contact an accredited mortgage broker to confirm your current eligibility.

What is the difference between using a non-bank lender versus a major bank for the 5% scheme?

Both offer access to the 5% deposit guarantee, but lenders assess applications differently. Non-bank lenders like Resimac may offer more flexibility in how they evaluate income, employment history, and borrower circumstances. Choosing a non-bank lender does not affect the government guarantee — it simply means a different underwriting process and potentially a better outcome for borrowers whose situation doesn't fit the major bank template.

What options are available for first home buyers who are self-employed or don't qualify for the government scheme?

For self-employed first home buyers or those who exceed scheme limits, non-bank Alt Doc lenders offer an alternative route. MPFG Capital can assess self-employed borrowers using BAS statements, accountant's letters, or bank statements rather than traditional tax returns. Speak with a broker about whether a non-bank product — such as MPFG's Bright Alt Doc product — may be suitable for your situation.

This article is general information only and does not constitute financial or credit advice. All applications are subject to credit assessment by MPFG Capital (ACL 553698).