Minimum 5% deposit for first home buyers. Your income doesn't restrict your access.
Scheduled payments for Thursday 1 January 2026, will be processed in advance on Wednesday 31 December 2025.
Australian government support for first home buyers
The Australian Government 5% Deposit Scheme helps you buy your first home sooner with a minimum of 5% deposit with a Government guarantee.
The Australian Government 5% Deposit Scheme gives you the flexibility to choose the type of home that suits your lifestyle, location and budget, right across Australia.
Both the purchase price and the home’s value (as assessed by your Lender) must stay at or below the cap. For building a new home on vacant land with separate contracts, the total land price plus build costs need to come in under the cap too.
Housing Australia has a Postcode Search Tool to find the price cap for your desired location. It’s only a guide – confirm with your Lender for any home you’re considering buying.
For regional centres in NSW (for example Newcastle and Lake Macquarie) the price cap is $1.5million and for other areas (for example Maitland) the cap is $800,000.
Housing Australia also has a Borrower Eligibility Tool to help home buyers identify your borrower eligibility for the Scheme.
Frequently Asked Questions
First Home Buyers with a minimum 5% deposit
There are unlimited places available under the Australian Government 5% Deposit Scheme from 1 October 2025.
Lenders Mortgage Insurance (LMI) is a one-off premium added to your home loan if you do not have a 20% deposit. It is an insurance policy which covers the lender against the losses they may suffer if the borrower can no longer pay loan repayments. If a borrower defaults on their mortgage, LMI means the lender can recover what is owed to them by repossessing the property the home loan is tied to. If the property’s value has fallen, the lender can suffer a loss. This is the risk LMI covers.
To access the Scheme, you need to meet borrower eligibility criteria including:
- Australian citizen or permanent resident, at least 18 years old
- Saved a minimum deposit of 5%
- A first home buyer or have not owned a property or land in Australia in the last 10 years
- Buying a home in Australia priced at or below the location’s price cap
- Planning to live in the home as an owner-occupier (no investment properties)
- Applying for an owner-occupier home loan with Principal and Interest repayments from a Participating Lender, up to 30 years (plus up to 3 years to build a new home)
- Applying on your own or jointly (max 2 applicants) with a partner, friend, or family member.
You can visit the Housing Australia website to find out more about the Scheme, including fact sheets and more Frequently Asked Questions.
Eligible first home buyers may also be able to take advantage of the Australian Government’s First Home Super Saver Scheme and other NSW Government grants and concessions.
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