Your guide to the Australian Government 5% Deposit Scheme

Many Australians dream of owning their own home, but with property prices at record highs, that dream can feel out of reach. To ease the pressure on first-time buyers, the government is expanding the Home Guarantee Scheme. From 1 October 2025, the Scheme will be expanded and renamed the Australian Government 5% Deposit Scheme. This guide will walk you through the Scheme and how to check if you’re eligible.

What is the Australian Government 5% Deposit Scheme?

The Australian Government 5% Deposit Scheme is designed to make home ownership more achievable. Under the Scheme, first home buyers will only need a minimum 5% deposit, while single parents can buy with as little as 2%. From 1 October 2025, the Scheme will have higher property price caps and fewer eligibility restrictions. The Scheme is only available through approved lenders, and we’re here for you as one of them. You can learn more about how we can help first home buyers here.

Scheme Features

From 1 October 2025:

• First-time buyers aged 18+ that are Australian citizens or permanent residents and who have saved a minimum deposit of 5% can apply
• Income caps have been removed
• Property price caps have been adjusted to reflect current market conditions in each state
• Low deposit options: 5% for first home buyers, 2% for single parents
• No Lenders Mortgage Insurance (LMI)
• Wide choice of home types
• Government-backed support: a Government guarantee is provided to your lender
• Unlimited spots with no waiting lists
• Purchase a property up to the price caps set by the Scheme for your location.

New property price caps

Property price caps vary by location. They are the same for first home buyers and single parents. The table below shows the current limits from 1 October 2025. For the most accurate and up-to-date figures, we recommend using the First Home Buyers property price cap tools. These tools can help you confirm your eligibility and check the property price caps for your chosen suburb. 

These caps only relate to Scheme eligibility. Newcastle Permanent credit assessment criteria also applies.

Area	Previous Cap	Cap effective 1 Oct 2025
NSW – Capital city and regional centres*	$900,000	$1,500,000
NSW – Other areas	$750,000	$800,000
VIC – Capital city and regional centre*	$800,000	$950,000
VIC – Other areas	$650,000	$650,000
QLD – Capital city and regional centres*	$700,000	$1,000,000
QLD – Other areas	$550,000	$700,000
WA – Capital city	$600,000	$850,000
WA – Other areas	$450,000	$600,000
SA – Capital city	$600,000	$900,000
SA – Other areas	$450,000	$500,000
TAS – Capital city	$600,000	$700,000
TAS – Other areas	$450,000	$550,000
ACT	$750,000	$1,000,000
NT	$600,000	$600,000
Jervis Bay & Norfolk Island	$550,000	$550,000
Christmas Island & Cocos (Keeling)	$400,000	$400,000

Are you eligible for the Australian Government 5% Deposit Scheme?

You may be eligible for the Scheme (from 1 October 2025) if:

• You’re buying your first home 
• The home is new or existing
• The property is located anywhere in Australia
• You have saved at least a 5% deposit
• You plan to live in the home
• The property value is within the updated price cap for your area (for example, up to $1.5 million in parts of NSW).

You might be eligible for the Scheme as a first home buyer if you:

• Are an Australian citizen or permanent resident, at least 18 years old
• Have saved a minimum deposit of 5%
• Are a first home buyer or have not owned a property or land in Australia in the last 10 years
• Are buying a home in Australia priced at or below the location’s price cap
• Plan to live in the home as an owner-occupier (no investment properties)
• Will apply for an owner-occupier home loan with Principal and Interest repayments from a participating lender, up to 30 years (plus up to 3 years to build a new home)
• Will apply on your own or jointly (max 2 applicants) with a partner, friend, or family member.

You may be eligible for the Scheme as a single parent if you:

• Are an Australian citizen or permanent resident, at least 18 years old
• Have saved a minimum deposit of 2%
• Are a single parent or single legal guardian of one or more dependent children
• Don’t have any other property interest once your new home settles
• Are buying a home in Australia priced at or below the location’s price cap
• Plan to live in the home as an owner-occupier (no investment properties)
• Will apply for an owner-occupier home loan with Principal and Interest repayments from a participating lender, up to 30 years (plus up to 3 years to build a new home)
• Will apply on your own (no joint applications).

Online tools to help you with the Scheme

To make the process easier, two online tools are available to assist home buyers with the Australian Government 5% Deposit Scheme:

• Borrower Eligibility Tool – a short questionnaire that helps you check whether you may be eligible for the Scheme, either as a first home buyer or a single parent.
• Postcode Search Tool – enter the suburb you’re buying in to find out the property price cap for that location. Price caps are the same for both first home buyers and single parents under the Scheme.

How to apply

Australian Government 5% Deposit Scheme (from 1 October 2025)

From 1 October 2025, you’ll apply through a participating lender.

1. Review your eligibility on the First Home Buyers website.
2. Check the property price cap for your location.
3. Contact a participating lender.
4. Your lender will submit the application to Housing Australia.
5. If approved, you can proceed with pre-approval and begin your search.

Getting started

Buying your first home is exciting and daunting all at once. It's a big decision, one that will impact your lifestyle and financial future. The Scheme we explored in this guide can help relieve some of the pressure and make it a little bit easier to realise your home ownership dream.

Before making a decision, use the Home Buyer Assistance Finder or check First Home Buyers website for the latest eligibility criteria. If you're not sure where to start, speak with us or conveyancer. They can walk you through the next steps and make sure you're on the right track.

^*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.