Real Estate
20 September, 2025
5 per cent deposit scheme fast-tracked
First home buyers will now be able to purchase homes with just a 5 per cent deposit starting October 1, 2025, earlier than the previously planned date next year.
The expanded 5 per cent deposit First Homebuyer Guarantee allows the Federal Government to guarantee part of a first home buyer’s loan, enabling them to avoid Lenders Mortgage Insurance and enter the property market with a lower deposit.
The scheme now has no caps on places or income limits, and property price caps have been increased to reflect average house prices. For the Greater Brisbane area, including Somerset and Moreton Bay, the price cap rises from $700,000 to $1 million. This means a first home buyer could purchase a $700,000 home with a $35,000 deposit.
Treasury analysis indicates this expansion could save first home buyers up to seven years in saving for a 20 per cent deposit, reduce rent costs, and save tens of thousands on Lenders Mortgage Insurance.
Federal Member for Blair, Shayne Neumann, said the scheme has already helped around 4,000 locals in his electorate achieve home ownership and will now support even more first-time buyers. The Government also plans to promote a wider range of lenders, including smaller and regional banks such as Bendigo Bank and Heritage Bank.
More information is available at www.housingaustralia.gov.au.
