Australian Government 5% Deposit Scheme: Current Guide for First Home Buyers

The former Home Guarantee Scheme is now the Australian Government 5% Deposit Scheme. It expanded on 1 October 2025 and is currently operating.

Last updated: August 2026

Eligible first-home buyers may purchase with a minimum 5% deposit without paying lenders mortgage insurance. Eligible single parents or legal guardians may use the separate 2% deposit stream.

What changed on 1 October 2025?

• The scheme was renamed the Australian Government 5% Deposit Scheme.
• Income caps were removed.
• The limit on available places was removed, so eligible applicants are not subject to a scheme waitlist.
• Property price caps increased.
• The Regional First Home Buyer Guarantee closed to new applicants; eligible regional buyers now apply through the relevant current stream.

Current first-home buyer eligibility

• You must generally be an Australian citizen or permanent resident and at least 18 years old.
• You must be a first-home buyer or not have owned property or land in Australia during the previous 10 years.
• You need a saved deposit of at least 5%.
• The home must be in Australia, within the applicable postcode price cap and purchased as an owner-occupied property.
• You must meet the participating lender’s credit assessment and loan requirements.

Queensland price caps

The broad cap is currently $1,000,000 for Brisbane, the Gold Coast and the Sunshine Coast, and $700,000 for other Queensland areas. Postcode-specific treatment can vary, so confirm the cap using the Government’s postcode tool and with the participating lender.

The guarantee is not a grant or loan approval

The Government guarantee supports the participating lender and can remove the need for lenders mortgage insurance. It does not pay the deposit, guarantee loan approval or protect the buyer from repayments, transfer duty, conveyancing costs, valuation differences or a fall in property value.

Before signing a contract

1. Confirm scheme eligibility and the postcode price cap with a participating lender.
2. Obtain written finance guidance and understand any valuation shortfall.
3. Include appropriate finance, building and pest and due-diligence conditions where available.
4. Budget for transfer duty, legal costs, searches, insurance and adjustments.
5. Obtain conveyancing advice before signing an unconditional contract.

Check the Australian Government 5% Deposit Scheme and current property price caps. Ensure Legal can assist with Queensland conveyancing.

This calculator and article provide general educational information only. They are not legal, financial or credit advice and do not determine eligibility.