5% Scheme pre-approved: what happens in the next 90 days?
Once pre-approved under the Australian Government 5% Deposit Scheme, a first-home buyer has 90 days to find a home and sign a contract of sale. Pre-approval starts a search window; it does not mean the home loan has received unconditional final approval.
The Scheme can help an eligible first-home buyer purchase with a minimum 5% deposit and no Lenders Mortgage Insurance. The buyer must still meet the Scheme rules and the participating lender's credit policy and loan approval criteria.
Separate the three stages
1. Scheme pre-approval: the participating lender assesses the buyer and the relevant Scheme requirements.
2. Find and sign within 90 days: the buyer selects an owner-occupied home and signs a contract of sale within the stated period.
3. Final lender approval: after a property is selected, the lender completes its property and full-application assessment.
Check the home, the loan and the cash separately
Both the purchase price and the lender-assessed property value must be at or below the price cap for the location. The official postcode tool is a guide; confirm the cap for a specific property with the participating lender.
Income, liabilities, living expenses, credit information and the property still affect the amount and approval outcome. A minimum deposit also does not cover every buying cost or future repayment.
Set an offer limit that survives final assessment
Before offering, separate Scheme eligibility from borrowing capacity and property acceptance. Allow for the deposit, purchase costs, repayments and a cash buffer. BV Finance can help organise the lending and budget questions, while legal contract advice should come from a conveyancer or solicitor.
Sources and practical tools
General information only. This is not financial advice. Loan options and eligibility depend on your personal income, liabilities, assets and lender assessment criteria.
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