Find out if you're eligible

Together with our partners at Resolve Finance, we will guide you through the process

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The Australian Government 5% Deposit Scheme has been expanded to help more Australians achieve their dream of home ownership*, with broader eligibility and increased property price caps.

 

Welcome to your go-to guide for the 5% Deposit Scheme, formerly known as the First Home Buyer Guarantee, or as the Home Guarantee Scheme in Victoria. This page will clearly explain how the scheme works, eligibility basics, property price caps, and the application process—helping you confidently navigate your path to home ownership.

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What is the 5% Deposit Scheme (First Home Buyer Guarantee)?

See if your eligible

The First Home Buyer Guarantee is now part of the Australian Government’s Home Guarantee Scheme, also known as the Australian Government 5% Deposit Scheme. It allows eligible buyers to purchase or build a home with a deposit from 5%, without the need to pay Lenders Mortgage Insurance (LMI).

Rather than requiring a full 20% deposit, the scheme enables buyers to enter the market sooner by reducing the upfront savings required. It is administered by Housing Australia and accessed through approved lenders.

From 1 October 2025, the scheme expands with:

  • No income caps
  • No limits on places
  • Increased property price caps

These updates reflect current market conditions and broaden the range of buyers who may be eligible.

See if your eligible 
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5% Minimum deposit required

No place limits for any eligible Victorian first home buyers in FY 2026-27

Individual and joint applicants

Maximum purchase prices apply. See price caps

First Home Buyer Guarantee is now incorporated into the 5% Deposit Scheme 

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What’s changing under the 5% Deposit Scheme?

From 1 October 2025, updates to the Australian Government 5% Deposit Scheme adjust how eligibility is assessed and how buyers access the scheme through lenders.

These changes remove previous constraints and allow eligible buyers to progress through the application process without competing for limited allocations.

Feature Before 1 October 2025 From 1 October 2025
Income caps $125,000 individual / $200,000 joint No income caps
Place limits Limited number of places Unlimited places
Property price caps Lower price caps Increased price caps
Note: Changes are indicative only and subject to government eligibility criteria and policy updates. Click for full details.

These updates are designed to support more Australians into home ownership, particularly those who may have previously been excluded due to income limits or capped availability.

If you’re considering applying, the next step is understanding how the home loan process works under the scheme — including how the government guarantee interacts with your loan and deposit.

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How the 5% deposit scheme works

The 5% Deposit Scheme supports first home buyers by easing upfront costs and enabling access to home loans through participating lenders.

Eligibility requires applying for an owner-occupier home loan with principal and interest repayments. Here’s how the process works:

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1

Save your deposit from 5%

Eligible buyers may be able to purchase a home with a deposit as low as 5% of the property value, subject to meeting the scheme criteria.

2

Speak with a lending specialist

Speak with a finance specialist, such as Resolve Finance, to better understand your eligibility, borrowing power and home loan options.

3

If eligible, the Government guarantee may apply

If you meet the eligibility criteria and your loan is approved, the Australian Government may provide a guarantee of up to 15% of the property value, which can reduce the need for Lenders Mortgage Insurance.

4

Purchase or build as an owner-occupier

If approved, you can proceed to purchase or build a home as an owner-occupier, subject to lender approval and scheme requirements.

Note: Eligibility criteria, lender requirements and Government scheme settings apply.
Read the full disclaimer.

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Participating Lenders

The Australian Government 5% Deposit Scheme is supported by a network of participating lenders across Australia, offering a range of home loans to suit different needs.

To help you navigate your options with confidence, Homebuyers Centre partners with Resolve Finance, our trusted finance partner.

Their experienced finance specialists can guide you through the process, help you understand your eligibility, and support your application through participating lenders.

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Benefits of the First Home Guarantee scheme

Getting into your first home doesn’t have to feel out of reach. With the right support in place, what once felt like a long-term goal can become a realistic next step.

The First Home Guarantee is designed to remove some of the common barriers that hold buyers back, helping you move forward with greater confidence and clarity.

Here’s how it can make a meaningful difference as you start your homeownership journey.

Benefit What it means for you
Lower upfront deposit (from 5%) Enter the property market sooner by saving a smaller deposit, reducing the time needed to reach a typical 20%.
May avoid paying LMI With most lenders, a deposit under 20% requires Lenders Mortgage Insurance (LMI). Under the First Home Buyer Guarantee, eligible buyers may not need to pay LMI—potentially saving thousands compared to standard home loans.
Clear pathway with expert support With guidance from Homebuyers Centre and Resolve Finance, you’ll have clear eligibility criteria and next-step direction to help you understand your options—without any guarantee of approval.
Ready to check your options? Enquire now 
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Where you build can shape your options

Property price caps vary by location, which can influence the types of homes and communities available under the scheme.

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Metro (Melbourne & Geelong)

The $950,000 cap supports access to a wide range of new developments, established homes, and house-and-land opportunities across growth corridors and established suburbs.

Regional Victoria

Across regional Victoria, the property price cap is $650,000, with additional support available through the Regional First Home Buyer Guarantee.

This pathway is designed to help more buyers enter the market in growing regional communities, where property prices are typically lower and opportunities to build can be more accessible.

What counts toward the cap

  • House-and-land packages: total of land and build contract
  • Separate contracts: combined land purchase and construction cost

Check your suburb’s price cap here:
Property Price Caps Tool