Australian Government 5% Deposit Scheme Explained
From 1 October 2025, the Scheme will remove limits to the number of Government guarantees available, giving all Australian first home buyers the chance to enter the market with a deposit of as little as 5% and avoid Lenders Mortgage Insurance.
The expanded Home Guarantee Scheme delivers on the Government’s election commitment to support all Australians into home ownership.
What’s changing from 1 October 2025?
- No place limits: all Australian first home buyers who have saved a 5% deposit can apply.
- No income caps: first home buyers with higher incomes can access the Scheme.
- Higher property price caps: to help home buyers where property prices have increased.
Property price caps from 1 October 2025
| Location | Current Property Price Cap | Property Price Cap effective 1 October 2025 |
| NSW – capital city and regional centre | $900,000 | $1,500,000 |
| NSW – other | $750,000 | $800,000 |
| VIC – capital city and regional centre | $800,000 | $950,000 |
| VIC – other | $650,000 | $650,000 |
| QLD – capital city and regional centre | $700,000 | $1,000,000 |
| QLD – other | $550,000 | $700,000 |
| WA – capital city | $600,000 | $850,000 |
| WA – other | $450,000 | $600,000 |
| SA – capital city | $600,000 | $900,000 |
| SA – other | $450,000 | $500,000 |
| TAS – capital city | $600,000 | $700,000 |
| TAS – other | $450,000 | $550,000 |
| ACT | $750,000 | $1,000,000 |
| NT | $600,000 | $600,000 |
| Jervis Bay Territory and Norfolk Island | $550,000 | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 | $400,000 |
* Regional centres are (1) in New South Wales – Illawarra, Newcastle and Lake Macquarie, (2) in Victoria – Geelong, and (3) in Queensland – Gold Coast and Sunshine Coast.
Are you eligible?
To access the Scheme, you need to meet eligibility criteria, including:
-
Australian citizen or permanent resident, at least 18 years old
-
saved a minimum deposit of 5%
-
a first home buyer or have not owned a property or land in Australia in the last 10 years
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buying a home in Australia priced at or below the location’s price cap
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planning to live in the home as an owner-occupier (no investment properties)
-
applying on your own or jointly with one other person (partner, friend, or family member).
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