Changes to the Australian Government 5% Deposit Scheme – what brokers need to know

From today, 1 October 2025, the Federal Government has expanded and rebranded its national low-deposit home ownership initiative, aimed at first home buyers.

The scheme, formerly known as the Home Guarantee Scheme, has been rebranded and is now officially known as the Australian Government 5% Deposit Scheme. It helps first home buyers with a minimum 5% deposit, or single parents with a minimum 2% deposit, by providing a government guarantee.

That’s one among several changes taking effect today to help first home buyers. Here are all the key updates every broker should be across: 

Regional Guarantee changes 

The Regional First Home Buyer Guarantee is now closed to new applications. Support for regional Australians is bolstered as they now have unlimited access to places under the 5% Deposit Scheme. 

This opens up broader opportunities for brokers to support regional clients without the constraints of limited places. 

A new government website 

• The Government has launched firsthomebuyers.gov.au, a central hub for all Commonwealth home buyer support. The website provides information on the 5% Deposit Scheme, Help to Buy, and the First Home Super Saver Scheme.  
• The site’s tools such as the Borrower Eligibility Tool and Postcode Search Tool make it easier to check eligibility and price caps. 
• Housing Australia links you’ve used previously will now redirect to the new website. 

Based on member feedback, the MFAA has been advocating for a simpler, easier way to access information about government schemes and this website helps to address this need.

The firsthomebuyers.gov.au website, combined with the MFAA’s comprehensive Home Buying Schemes in Australia guide on our Find a Broker website, means there’s less confusion, more opportunities and simpler tools.

The changes equip brokers with the information they need to support their first home buyer clients, ensuring brokers can demonstrate the value they bring to borrowers as trusted experts.

Changes to 5% Deposit Scheme place limits, income and price caps

From 1 October, the following changes come into effect:

• No place limits: all Australian first home buyers who have saved a 5% deposit can apply.

• No income caps: first home buyers with higher incomes can access the scheme.

• Higher property price caps: to help home buyers where property prices have increased.

Property price cap increases

NSW – capital city and regional centre – rises from $900,000 to $1,500,000

NSW – other – rises from $750,000 to $800,000

VIC – capital city and regional centre – rises from $800,000 to $950,000

VIC – other – $650,000, no change

QLD – capital city and regional centre – rises from $700,000 to $1,000,000

QLD – other – rises from $550,000 to $700,000

WA – capital city – rises from $600,000 to $850,000

WA – other – rises from $450,000 to $600,000

SA – capital city – rises from $600,000 to $900,000

SA – other – rises from $450,000 to $500,000

TAS – capital city – rises from $600,000 to $700,000

TAS – other – rises from $450,000 to $550,000

ACT – rises from $750,000 to $1,000,000

NT – $600,000, no change