Expanded Australian Government 5% Deposit Scheme to support more Australians into home ownership

Housing Australia welcomes the expansion of the Australian Government’s home ownership support, with the launch of the Australian Government 5% Deposit Scheme. From today, the changes made to the Scheme will make it easier for more Australians to buy a home, with unlimited places, higher property price caps, and no income caps.

The Scheme, formerly known as the Home Guarantee Scheme, enables eligible first home buyers to purchase a home with a deposit as low as 5%, and single parents or legal guardians with a deposit as low as 2%, without the need to pay Lenders Mortgage Insurance. This helps buyers enter the market sooner, without the delay of saving a 20% deposit.

Key changes include:

• unlimited places available under the Scheme  
• removal of income caps for eligible applicants
• increased property price caps across jurisdictions to reflect market growth
• continued support for single parents, who can purchase a home with a minimum 2% deposit.

Since its inception in 2020, the Scheme has supported more than 240,000 Australians into home ownership. Its reach has grown substantially, supporting over 1 in 3 first homebuyers nationally in 2024–25, compared to 1 in 10 in its first full year of operation. To date, more than 34,000 households have successfully exited the Scheme, primarily by paying down their loans or refinancing. This underscores the Scheme’s role as a transitional support mechanism, helping Australians enter the housing market and build long-term financial independence.

The Scheme is available through more than 30 Participating Lenders, with Housing Australia preparing to open Expressions of Interest later this year to further broaden and expand the Scheme’s lender panel. This will provide more choice and accessibility for home buyers across Australia.

The Australian Government 5% Deposit Scheme is one of three major Government initiatives supporting Australians into homeownership. To make it easier for aspiring buyers to explore their options, the Government has also today launched First Home Buyers, a new website that serves as a one-stop-shop, bringing together information on available support for home buyers in one central location.

Scott Langford, CEO of Housing Australia, said:

“The expansion of the Australian Government 5% Deposit Scheme offers more Australians the chance to realise their homeownership dreams, sooner. By removing income limits on eligible first homebuyers, increasing property price caps nationwide and providing an unlimited number of Government-backed guarantees, the Scheme will support thousands more Australians secure a place to call home.”

For more information about the expanded Australian Government 5% Deposit Scheme, including eligibility and how to apply, visit firsthomebuyers.gov.au.