On October 1, 2025, the Australian Government expanded the Australian Government 5% Deposit Scheme, removing place limits and income caps, and increasing property price caps giving more Australian home buyers a chance to enter the market sooner. The Scheme is for aspiring home buyers – first home buyers with a minimum 5% deposit, or single parents or legal guardians with a minimum 2% deposit.
The Australian Government 5% Deposit Scheme, formerly known as the Home Guarantee Scheme, is a key initiative within the Albanese Government’s $43 billion dollar housing plan.
What This Means for Buyers
If you’ve been struggling to save a large deposit or worried about rising prices, the 2025 changes represent a significant opportunity by reducing up front costs such as LMI fees.
- No place limits: all Australian first home buyers who have saved a minimum 5% deposit can apply or single parent and/or legal guardian with a minimum 2% deposit.
- 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.
Core Eligibility Criteria remains in place
- Must be an Australian citizen or permanent resident of at least 18 years of age
- Buying a first home to live in (owner-occupier), not an investment property
- Saved the minimum deposit requirement
- Buying a home in Australia priced at or below the locations price cap
- Must meet the lender’s credit and serviceability requirements
View detailed eligibility criteria for First Home Buyers and Single Parents here.
Applications are made through participating lenders, not directly with Housing Australia, who administer the 5% Deposit Scheme on behalf of the Australian Government.
Your chosen lender will confirm your eligibility and submit the application on your behalf.
The information provided in this article is general in nature and does not constitute financial or legal advice. Eligibility for government grants and schemes may vary based on individual circumstances and location. The Australian Government 5% Deposit Scheme eligibility criteria apply. We recommend visiting the official government websites listed to verify your eligibility and obtain the most up-to-date details.