The Australian Government 5% Deposit Scheme
Imagine unlocking the door to your very own home sooner than you ever thought possible. With the Australian Government 5% Deposit Scheme you can make home ownership a reality faster.
This scheme is designed for first home buyers like you. If you have a minimum 5% deposit, or you’re a single parent or legal guardian with at least 2% deposit, you may qualify.
From 1 October 2025, major changes make the scheme even better:
- No income caps
- No waitlists
- No Lenders Mortgage Insurance (LMI)
These updates reduce your upfront costs and help you secure a home sooner. Whether you’re buying a cosy apartment, a family home, or building on vacant land, the scheme supports you in finding a property that suits your lifestyle and budget—right across Australia.
Since its launch in 2020, the scheme (formerly known as the Home Guarantee Scheme has helped over 248,000 Australians achieve home ownership. Could you be next?
If this Scheme is not right for you then you may want to consider the Australian Government Help to Buy Scheme or if you are still in the early stages of saving your deposit you may want to look into the Australian Government First Home Super Saver Scheme.
The Scheme is designed to help
The 5% Deposit Scheme is designed to help you enter the property market sooner with less cost
- First home buyers
“First home buyers need a minimum deposit of at least 5% of the property’s purchase price in genuine savings in order be eligible for the scheme and finance. As a First home buyer you may also be eligible for the First Home Owner Grant.”
- Single parents or legal guardians
“To be eligible for the scheme and finance you need a minimum deposit of at least 2% of the property’s purchase price in genuine savings.”
The key features and benefits
The features and benefits may seem simple however the benefits are huge
- You only need a very small deposit
“Making home ownership more achievable.”
- You don’t pay Lenders Mortgage Insurance
“This alone is a significant savings.”
- Significant savings to be made
- Broad selection of lenders to choose from
“By being part of the Scheme, it also opens you up to getting really good interest rate not normally offered when the LVR is so high.”
- Backed by the Australian Federal Government
“The Australian Federal Government designed and implemented the Scheme; this new version is so much more user friendly.”
- Unlimited places in the Scheme
“There are some restrictions, mostly around property values, but overall, the Scheme is pretty generous.”
- No income caps
“The previous Scheme set income caps, the Government has removed the income caps for this version.”
Current property price caps per region
| Location | Property Price Cap |
|---|---|
| NSW – capital city & regional centre | $1,500,000.00 |
| NSW – other | $800,000.00 |
| VIC – capital city & regional centre | $950,000.00 |
| VIC – other | $650,000.00 |
| QLD – capital city & regional centre | $1,000,000.00 |
| QLD – other | $700,000.00 |
| WA – capital city | $850,000.00 |
| WA – other | $600,000.00 |
| SA – capital city | $900,000.00 |
| SA – other | $500,000.00 |
| TAS – capital city | $700,000.00 |
| TAS – other | $550,000.00 |
| ACT | $1,000,000.00 |
| NT | $600,000.00 |
| Jervis Bay Territory & Norfolk Island | $550,000.00 |
| Christmas Island & Cocos (keeling) Islands | $400,000.00 |
Who can the Scheme help?
First home buyers
The scheme is designed to help Australian first home buyers enter the property market sooner with less deposit and minimal costs.
Single parents
If you’re a single parent or legal guardian with a minimum deposit of 2% then the scheme is here to help you find a home sooner with minimal deposit and costs.
Fact sheet
Read the Fact Sheet to find out more about the Australian Government 5% Deposit Scheme.
