From today, all first home buyers in Australia can secure their dream of home ownership sooner, with the Albanese Government’s expanded 5% deposit scheme now available to everyone.
The scheme — delivered months ahead of schedule — allows buyers to purchase a property with just a 5% deposit, with the government guaranteeing part of the loan. This means first home buyers can avoid costly Lenders Mortgage Insurance, cut years off the time it takes to save, and move from renting to home ownership sooner.
What the Change Means for Buyers
Until now, eligibility for the scheme was limited. With today’s expansion, there are:
- No income caps
- No caps on places
- Higher property price caps aligned with today’s market
The impact is significant. With the median home price at $844,000, a 5% deposit equals $42,200. That same amount once covered a 20% deposit back in 2002 — highlighting the scale of today’s affordability challenges.
Under the expanded scheme:
- A first home buyer in Sydney can purchase a $1 million home with a $50,000 deposit. They could save up to 10 years of deposit saving, avoid about $42,000 in mortgage insurance, and redirect up to $350,000 into their own loan instead of rent.
- A first home buyer in Bendigo could buy a $600,000 home with just a $30,000 deposit. They could save up to 6 years of deposit saving, avoid around $25,000 in mortgage insurance, and redirect about $126,000 into their mortgage instead of rent.
Since its launch, more than 185,000 Australians have already been supported into home ownership through this scheme.
Part of a $43 Billion Housing Agenda
The 5% deposit expansion is one piece of the Albanese Government’s $43 billion housing agenda, which also includes:
- Building more homes across the country
- Backing first home buyers
- Giving renters a better deal
Leadership Speaks Out
Prime Minister Anthony Albanese said the expansion reflects his government’s commitment to young Australians.
“We’re making it easier for young people and first home buyers to achieve the dream of owning a home. From today, the 5% deposit scheme will be available for all first home buyers, meaning more Australians can get into their own home sooner.”
Minister for Housing Clare O’Neil added that the change addresses the challenges facing the next generation.
“From today, every first home buyer can purchase their own home with just a 5% deposit. That will cut the average time it takes to save a deposit from 11 years down to just 2 or 3. It’s really tough for young people trying to get into the housing market. Expanding this scheme means thousands more Australians can stop paying off someone else’s mortgage and start building equity in their own home.”
Member for Werriwa, Anne Stanley, MP also added, we want to help young people, and first home buyers achieve the dream of home ownership sooner.
“From 1st October 2025, all first home buyers in Werriwa will be able to buy a home of their own with a deposit of just 5 per cent, while single parents only need a 2% deposit.
“This scheme will cut years off the time it takes to save for a deposit, and you won’t have to pay a single dollar in Mortgage Insurance.”
Where to Learn More
Full details on eligibility and the application process are available at the Housing Australia website.
