Published: 1 October 2025
The Australian property market has just entered a new era. From today, the Government has significantly expanded the Australian Government 5% Deposit Scheme, removing key barriers that have locked many Australians out of home ownership. At Commercial Brokers Australia, we’re excited to break down what these changes mean for you and how they could accelerate your path to owning your first home.
What’s Changed Today?
The Home Guarantee Scheme has been rebranded and substantially reformed as the Australian Government 5% Deposit Scheme. But this isn’t just a name change—it represents one of the most significant housing policy shifts in recent years, with three major updates:
1. Income Caps Have Been Removed
Previously, the scheme was restricted to buyers earning up to $125,000 per year as singles or $200,000 for couples. These limits excluded many hardworking Australians from accessing government support.
From today, there are no income limits. This means higher-income earners, professionals, and dual-income households who were previously excluded can now access the scheme. If you’ve been waiting for the opportunity to use this government support, today might be your day.
2. Property Price Caps Have Increased Across the Country
As property values have risen, the previous price caps became increasingly unrealistic. The Government has now significantly increased these caps to reflect current market conditions across Australia. For example:
- Sydney properties can now be valued up to $1.5 million (previously $900,000)
- Melbourne properties can be valued up to $950,000 (previously $800,000)
- Similar increases apply across all states and regional areas
This means properties that were previously ineligible can now qualify for the scheme. If you’ve found your dream home but it exceeded the old caps, you may now be able to purchase with government support.
3. Unlimited Places Mean No More Waiting Lists
The scheme now operates with unlimited Government guarantees. Previously, there were caps on how many borrowers could access the scheme in any given period, creating waiting lists and competition for places.
This is a game-changer. All eligible buyers who have saved their 5% deposit can now apply without competing for limited spaces. You can apply when you’re ready, not when a spot becomes available.
What Else Hasn’t Changed?
While these expansions are significant, the core benefits of the scheme remain:
5% Deposit (or 2% for Single Parents) You can purchase a home with just a 5% deposit as a first home buyer, or as little as 2% if you’re a single parent or guardian. This saves years of saving compared to the traditional 20% deposit requirement.
No Lenders Mortgage Insurance (LMI) The Government’s guarantee means you won’t pay Lenders Mortgage Insurance. For many buyers, this saves thousands of dollars in upfront fees—costs that would normally be added to your loan.
Government-Backed Support The Australian Government acts as a guarantor for the remaining amount between your deposit and the 20% threshold, making your loan more attractive to lenders and enabling you to borrow with confidence.
Who Can Apply?
To be eligible for the Australian Government 5% Deposit Scheme, you must:
- Be an Australian citizen or permanent resident, at least 18 years old
- Be a first home buyer (or have not owned property in the past 10 years for the General Stream)
- Have saved at least a 5% deposit
- Intend to live in the property as your principal residence (investment properties don’t qualify)
- Purchase a property within your area’s price cap
- Apply through a participating lender
- Apply for a Principal and Interest home loan with a loan term of up to 30 years
Single parents and legal guardians can access the Single Parent Stream with a 2% deposit (with slightly different eligibility criteria).
Why This Matters Now
The Australian property market has become increasingly challenging for first-time buyers. Rising property values, particularly in major cities, have made saving large deposits a decade-long prospect for many. Meanwhile, rental costs have continued to climb, leaving many Australians feeling locked out of home ownership.
These changes address that reality head-on. By removing income restrictions and increasing price caps, the Government is acknowledging that more Australians deserve access to support in achieving home ownership—particularly those who have worked hard and saved diligently.
How Commercial Brokers Australia Can Help
As Queensland-based specialists in commercial and personal finance, we understand the Australian lending landscape inside out. Whether you’re a first-time buyer, a professional with a higher income, or a single parent looking to achieve home ownership, we can guide you through the scheme.
Our independent status means we have access to over 30 participating lenders—we’re not restricted to just a few options. We’ll help you:
- Determine your eligibility under the new expanded criteria
- Find the best interest rates and loan structure for your situation
- Navigate the application process with your chosen lender
- Ensure you understand the property price cap for your desired location
- Structure your finance to achieve the best long-term outcome
We believe in old-fashioned service and going the extra mile. You’ll know us by name, reach us on our mobile, and can trust us to work for you, not the lenders.
Next Steps
If the expanded Australian Government 5% Deposit Scheme sounds like it could help you achieve home ownership sooner, here’s what you should do:
- Check your eligibility using the Government’s tools at firsthomebuyers.gov.au
- Find your area’s price cap using the Postcode Search Tool
- Contact us to discuss your situation and explore your loan options
- Apply through a participating lender with our guidance and support
Don’t let this opportunity pass by. The expanded scheme opens doors that were previously closed. Whether you’ve been saving for years or are just starting your home-buying journey, today’s changes could make all the difference.
Get in Touch
At Commercial Brokers Australia, we’re passionate about helping Australians achieve their financial goals. We work across Queensland and throughout Australia, supporting clients with business finance, personal loans, investment property finance, and home loans.
Ready to explore how the expanded 5% Deposit Scheme could work for you? Contact us today for a no-obligation conversation.
Commercial Brokers Australia is an independent finance specialist based in Queensland. Founded in 2002, we provide commercial and personal finance solutions to clients across Australia. We’re committed to working for our clients, not our lenders, and pride ourselves on old-fashioned service with a modern approach.
This blog post is current as of 1 October 2025. For the most up-to-date information on the Australian Government 5% Deposit Scheme, visit firsthomebuyers.gov.au
