Everything you need to know about the Australian 5% Deposit Scheme — what it costs, who qualifies, the price caps in your area, and how to use it properly.
See your options — free callSlide to a purchase price and see your 5% deposit and estimated repayments under the scheme.
Estimate only, for illustration. Based on 5.5% p.a. over 30 years, principal & interest; excludes fees, rates and other purchasing costs. Actual rates and repayments vary by lender and your circumstances, and rate changes will change repayments. This is not an offer of credit or financial advice.
Housing Australia promises your bank it will cover part of the loan if things ever go wrong. No money changes hands — it's a safety net for the bank, not a loan to you.
With the government behind you, the bank treats your 5% deposit like 20% — and drops Lenders Mortgage Insurance completely, saving you $20,000–$50,000.
Your name on the title, every dollar of growth yours, and nothing to repay the government — ever. The guarantee quietly falls away as you pay down your loan.
That's genuinely it — a normal home loan, with the government's backing replacing the deposit you haven't finished saving.
The requirements are simpler than most people expect — and since the October 2025 expansion, there are no income caps and no limits on places.
At least 18 years old — Australian citizens, New Zealand citizens and Australian permanent residents can all apply.
You've never owned property in Australia, or you haven't held an interest in one for the last 10 years.
A minimum 5% of the purchase price as a genuine deposit (between 5% and 20% to use the scheme).
The property must be your home, not an investment — you'll need to move in within 6 months of settlement and live there as your principal place of residence.
Previous income limits were removed in the October 2025 expansion — your income no longer affects eligibility.
Individuals, couples, friends and siblings can all apply — joint applicants must each meet the criteria.
Houses, townhouses, units and apartments all qualify — including house-and-land packages and off-the-plan — under your area's price cap.
You'll still need to qualify for the loan itself — enough income to support the repayments, and a reasonable credit history. We assess this upfront, before any bank sees your file.
The scheme applies up to a maximum property price, which depends on where you're buying. Caps were raised significantly in the October 2025 expansion.
| State / Territory | Capital city & major regional areas | Rest of state |
|---|---|---|
| NSW | $1,500,000 | $800,000 |
| VIC | $950,000 | $650,000 |
| QLD | $1,000,000 | $700,000 |
| WA | $850,000 | $600,000 |
| SA | $900,000 | $500,000 |
| TAS | $700,000 | $550,000 |
| ACT | $1,000,000 | — |
Greater Sydney, plus the Newcastle & Lake Macquarie and Illawarra (Wollongong) regions — covering a large share of where NSW buyers actually purchase.
Greater Melbourne and the Geelong region.
Greater Brisbane, the Gold Coast and the Sunshine Coast.
Greater Perth.
Greater Adelaide.
Greater Hobart.
Note: every postcode has its own maximum property price allowed under the scheme — we'll confirm yours.
Price caps and stamp duty thresholds are set by government, change over time, and vary by location — current as at August 2026. Verify the latest details at firsthomebuyers.gov.au and your state revenue office. Scheme eligibility is determined by Housing Australia and participating lenders.
The 5% scheme is federal. Stamp duty concessions are state-based — and most first home buyers can use both at once, including on established homes.
Stamp duty is usually the biggest cost after your deposit — typically $30,000–$60,000. Combine a full exemption with the scheme's $0 LMI, and many buyers purchase an established home with little more than their 5% deposit plus a few thousand in legal and bank fees. It's the difference between "years away" and "this year".
| State | First home buyer duty relief on established homes (indicative) |
|---|---|
| NSW | $0 duty up to $800,000 · concessions up to $1,000,000 |
| VIC | $0 duty up to $600,000 · concessions up to $750,000 |
| QLD | $0 duty up to $700,000 · concessions up to $800,000 |
| WA | $0 duty up to $600,000 · concessions up to $800,000 |
| ACT | $0 duty up to $1,000,000 |
| SA & TAS | Relief currently focused on new builds — established homes generally pay duty |
Thresholds are indicative, change with state budgets, and conditions apply — confirm with your state revenue office, or we'll calculate your exact duty position on your free call.
It's a federal government program that lets eligible first home buyers purchase with a 5% deposit instead of the usual 20% — with the government guaranteeing part of your loan to the bank, and no Lenders Mortgage Insurance to pay.
The difference is life-changing in practice: on a $600,000 home, you need $30,000 saved instead of $120,000. For most people saving while renting, that's the difference between buying this year and saving for another five or more.
No and no. The government doesn't lend or contribute money — it guarantees part of your loan to the bank. You fund the purchase with your 5% deposit and a 95% loan. Nothing to repay, no one on your title, and every dollar of growth is yours.
Both. Established houses, townhouses, and apartments all qualify, as do new builds, house-and-land packages, and off-the-plan purchases — provided the price is under your area's cap and you'll live in the property.
Not anymore. Income caps were removed in the October 2025 expansion, along with the annual limit on places. Your income still matters for how much a bank will lend you — but it no longer affects whether you can use the scheme.
You're generally allowed to keep up to $20,000 in savings after all purchasing costs — your 5% deposit, stamp duty and other fees. Anything above that $20,000 goes toward your deposit.
That's no bad thing: a bigger deposit means a smaller loan, lower repayments, and less income needed to get approved. We'll run your exact numbers on the free call.
Yes — you can apply by yourself, or with one other eligible person: a partner, friend or family member. Each applicant needs to meet the eligibility criteria, so if your co-buyer has owned property recently, you can't apply together under the scheme — but other pathways may be worth a chat.
Yes. Auction contracts usually ask for a 10% deposit on the day — but that's negotiable. Simply confirm with the agent before the auction that the seller will accept a 5% deposit if you win, and with pre-approval in hand, the vast majority will agree.
The key is bidding prepared: auction purchases are unconditional, so you want your pre-approval and scheme place locked in first. That's exactly the position we get clients into — pre-approved with a confirmed budget, so bidding is safe.
The scheme itself is free — there's no government fee to participate. You'll still have normal purchasing costs (legal fees, bank fees, and stamp duty unless exempt). Your biggest saving is Lenders Mortgage Insurance, which the scheme eliminates entirely.
Honestly — a couple, and they're worth knowing. Because you're borrowing 95% instead of 80%, your repayments will be slightly higher, and you'll need a bit more income to be approved compared to buying with a 20% deposit.
For many first home buyers, being able to buy years sooner — and stop paying rent — outweighs both. We'll run your exact numbers on the free call so you can weigh it for yourself.
Yes — and it's simple. The person gifting the money just signs a short declaration confirming it's a gift, not a loan, and it can count as your 5% deposit. We'll take care of the rest.
Book the call anyway — about a third of the people we speak to aren't ready yet, and they don't leave with a rejection. You'll leave with a free plan: the savings target that unlocks your price range, what to sort out first, and a check-in date.
There can also be other pathways worth discussing, including the government's Help to Buy program, which can start from as little as a 2% deposit.
Not quite — you'll need your 5% deposit plus purchasing costs like legal fees and any applicable stamp duty. The good news: most states offer first home buyer stamp duty exemptions up to certain price points, which is why many of our clients only need around $5,000 on top of their 5%. We confirm your exact number on the call.
You apply through a participating lender — and that's our whole job. We confirm your eligibility, secure your place in the scheme, prepare your application, and lodge it with the bank most likely to say yes to your situation. It starts with the free 15-minute call, and from there we handle the process end to end.
Strongly recommended — and for auctions, essential. Pre-approval is the bank's written agreement to lend you a specific amount, which means you can make offers with confidence, agents take you seriously, and you're not scrambling for finance after finding the right home. Getting you pre-approved and ready to make offers is exactly what our 30-day guarantee covers.
No — the scheme is for buying a home to live in, not an investment property. You'll need to move in and live there. If your circumstances genuinely change down the track, what's allowed depends on your lender and the scheme rules at the time — but going in, this is strictly an owner-occupier program.
Very often, yes. Every bank treats casual, contract and self-employed income differently — some want two years of history, others far less. Matching your income type to the right bank is half our job, and exactly what we work out on the free call.
Yes — and we handle that for you. Under the scheme, we can get you a home loan with a mainstream lender. Because you're borrowing 95%, your loan will be higher than if you'd saved a 20% deposit — but it works just like most home loans: you repay principal and interest, typically over 30 years, with the government guarantee sitting quietly behind it.
Unlike most mortgage brokers, Homli specialises exclusively in helping eligible first home buyers purchase using the Australian Government 5% Deposit Scheme.
Every process, bank recommendation and piece of advice is focused on one thing — helping eligible first home buyers get ready to make offers and purchase their first home with the 5% Deposit Scheme.
A complimentary 15-minute call — no credit check, no obligation. You'll leave knowing: