Expanded 5% Deposit Scheme Opens Doors for First Home Buyers

Under the revised scheme, all first home buyers have access, with no caps on places or income limits. Property price caps have also been adjusted upwards to align with average house prices, providing access to a broader range of homes. For instance, a first home buyer in Brisbane can now purchase a $1 million property with a $50,000 deposit, potentially saving up to $42,000 in LMI costs.

Prime Minister Anthony Albanese emphasized the government's commitment to helping young Australians achieve homeownership. Bringing the start date of the 5% deposit scheme forward will help more Australians realize their dream of home ownership sooner.

Housing Minister Clare O'Neil highlighted the scheme's role in leveling the playing field for first home buyers. The expanded scheme means a first home buyer in Brisbane can purchase a $1 million home with a $50,000 deposit. They could save up to 10 years off the time it takes to save for a deposit, save about $42,000 in mortgage insurance, and could pay up to $350,000 towards their own loan instead of paying rent.

Since the scheme's expansion, there has been a notable increase in first home buyer activity. Data from the Australian Bureau of Statistics indicates that the number of new first home buyer loans rose by 6.8% to 31,783 in the December quarter of 2025, marking the most substantial increase since late 2023.

While the scheme has been instrumental in facilitating homeownership, some analysts caution that increased demand may contribute to rising property prices, particularly in the entry-level segment. Prospective buyers are advised to consider both the benefits and potential market dynamics when planning their purchase.