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 Australian Government 5% Deposit Scheme in regional Victoria. If you’ve been searching for the Regional First Home Buyer Guarantee, this page will help you understand what’s changed and what it means for you.
For eligible buyers, the outcome remains the same—you may still be able to buy or build with as little as a 5% deposit and potentially avoid lenders mortgage insurance, helping you enter the property market sooner.
Below, you’ll find a clear breakdown of how the scheme now works in regional Victoria, including eligibility basics, property price caps, and how to get started through participating lenders.
What happened to the Regional First Home Buyer Guarantee (now part of the 5% Deposit Scheme)?
The Regional First Home Buyer Guarantee is now part of the Australian Government’s Home Guarantee Scheme, delivered through the Australian Government 5% Deposit Scheme.
From 1 October 2025, the Regional First Home Buyer Guarantee was incorporated into this broader scheme, bringing regional and metro buyers into a single, unified program administered by Housing Australia.
This means there is no longer a separate regional application process. Instead, all eligible buyers access the scheme through participating lenders under the same national framework.
Key changes from 1 October 2025 for regional buyers
- No place limits
- No income caps
- Scheme consolidation
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
Regional First Home Buyer Guarantee is now incorporated into the 5% Deposit Scheme
What’s changing under the 5% Deposit Scheme?
From 1 October 2025, updates to the Australian Government 5% Deposit Scheme change how regional Victorian buyers access the scheme and how eligibility is assessed through participating lenders.
The comparison below outlines the key changes, including updated eligibility settings and how buyers apply through the unified scheme.
| 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 regional places (previously 10,000 places under the RFHBG) | Unlimited places |
| Property price caps | Lower price caps | Increased price caps |
| Scheme access | Separate regional application (RFHBG) | Unified national scheme via participating lenders |
| Note: Changes are indicative only and subject to government eligibility criteria and policy updates. Click for full details. | ||
These changes remove previous constraints and make it easier for eligible regional Victorian buyers to access the scheme without competing for limited places.
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.
For full eligibility detail and how to apply, see our First Home Guarantee guide alongside our broader overview of the First Home Guarantee Scheme and 5% deposit eligibility.
Unlock your dream home in Regional Victoria
Building in regional Victoria gives you the opportunity to create a home that suits your lifestyle, with access to growing communities, local amenities, and more space to live comfortably.
With a clearer pathway into the market and more options available, it’s now easier to take the next step.
Am I eligible for the 5% Deposit Scheme in regional Victoria?
Eligibility is set by the Australian Government. To access the scheme, you must:
- Be an Australian citizen or permanent resident aged 18 years or over
- Not have owned any residential property in the past 10 years
- Meet income requirements (applied prior to October 2025)
- Live in the property as an owner occupier
- Have a minimum 5% genuine savings deposit (or 2% for eligible single parents or legal guardians)
- Apply for a home loan through a participating lender
Eligible single parents and single legal guardians may access the scheme with a lower deposit. Learn more here.
Regional Victoria price cap under the 5% Deposit Scheme
The scheme uses maximum property prices that depend on where in Victoria you buy or build:
| Location | Maximum property price |
|---|---|
| Metropolitan Melbourne and Geelong | $950,000 |
| Regional Victoria (eligible postcodes) | $650,000 |
| These caps can change. Check your suburb’s current price cap using the official Housing Australia tool. | |
Not every town is treated as “regional,” so always check your postcode using the official Housing Australia tool, and consider what home building grants and financial assistance in Victoria might apply to your situation.
For buyers building a new home, the cap applies to both the purchase price of land and the build contract price combined.
Which regional Victorian areas are eligible?
As mentioned, “regional Victoria” is defined by postcode under the scheme. Key areas include:
- Ballarat
- Bendigo
- Gippsland (including Warragul and Drouin)
- Selected growth areas surrounding Geelong (note: Geelong itself is classified as metro under the scheme)
Eligibility is determined based on the postcode of the property, so it’s important to confirm how your chosen location is classified when planning your build.
What counts toward the $650,000 cap?
The regional cap is based on the total property value covered by your contract(s):
- House-and-land with separate contracts: Total land price plus building contract must be $650,000 or less
- Single contract for completed new home: Full contract price must be $650,000 or less
Your lender, together with your finance specialist at Resolve Finance, will assess the combined figures against the regional price cap.
Why regional builds suit the 5% Deposit Scheme
In Summary, building in regional Victoria can align well with the scheme because land prices and build costs often fit under the cap:
- Many regional house-and-land packages stay within the $650,000 regional price cap
- You get a brand-new, energy-efficient home with modern inclusions
- Homebuyers Centre designs are tailored to first home buyer budgets
- Eligible new builds may qualify for the $10,000 First Home Owner Grant
- Resolve Finance focuses on construction loans under the scheme
Example only: Land in a regional estate for $280,000 plus a new home build contract for $340,000 gives a total of $620,000—under the $650,000 regional cap.
This example is indicative only and does not consider your personal circumstances. Eligibility criteria apply and are subject to state and/or federal government requirements. Visit www.sro.vic.gov.au for full details. Financial services are provided by Resolve Financial Solutions Pty Ltd trading as Resolve Finance (ABN 65 079 545 378, Australian Credit Licence 385487). Homebuyers Centre is a building practitioner (ABN Group (Vic) Pty Ltd, CDB-U 49215). Images are for illustrative purposes only.
Building your first home in regional Victoria with a 5% deposit
For many first home buyers, building can be a more straightforward way to make the most of the scheme, especially when you’re working within price caps and planning around your budget from the beginning.
With eligible Victorian grants available (such as the First Home Owner’s Grant) for new homes, and more flexibility in how you structure your build, it can be easier to find an option that fits—without needing to compromise on location or lifestyle.
You’ll also have more clarity along the way, from understanding what you can borrow through to seeing your home come together step by step.
With the right support, it’s a process you can move through with confidence.
Ready to get started?
Explore regional house and land options Check your eligibility
How to access the 5% Deposit Scheme as a regional Victorian buyer
You can’t apply directly through the government. Instead, applications are submitted via participating lenders, brokers or finance specialists, such as Resolve Finance, who work with a wide network of over 35 lenders.
The process starts by speaking with a New Homes Consultant, who can guide you through suitable house and land options, with support from a finance specialist to help you move forward with confidence.
Step-by-step guide
Start by speaking with a New Homes Consultant to explore suitable house and land package options. They’ll connect you with a trusted broker via our trusted partner, Resolve Finance, specialists in construction finance, who can help you understand your situation, borrowing capacity and next steps.
Use Housing Australia’s online tool to confirm your eligibility and whether your preferred suburb falls within an eligible regional postcode and price cap.
Resolve Finance will determine your needs and help match you with a suitable participating lender offering home loans under the scheme. This process includes gathering key documents such as identification, income details, savings history and any existing debts to support your home loan application.
Lock in your home or house-and-land package in regional Victoria that aligns with your budget and falls within the applicable price cap. Finalise contract and send to your broker.
Once your home loan is formally approved, with support from your broker, your lender will apply for the government guarantee on your behalf before settlement. For the full application guide, including documents and construction loan stages, see our First Home Guarantee guide.
Proceed to settlement. When building, your loan will progress through construction stages until your new home is complete.
Homebuyers Centre and Resolve Finance are here to support you every step of the way.
Current eligibility criteria:
To apply for the Australian Government 5% Deposit Scheme, eligible home buyers must:
- apply as an individual or as joint applicants (including partners, friends or family members)
- be an Australian citizen or permanent resident at the time they enter the loan
- be at least 18 years of age
- intend to live in the property as an owner-occupier
- have saved a minimum deposit (typically 5%, or 2% for eligible single parents or single legal guardians with dependents)
- either be a first home buyer or not have owned, or had an interest in, residential property in Australia in the past 10 years
- purchase or build a property within the applicable price cap for the location
From 1 October 2025, the scheme has expanded to remove income caps and place limits, making it accessible to a broader range of eligible home buyers.
For more information on eligibility requirements, click here.
Information on this page does not consider your personal needs and financial circumstances and you should consider whether it is appropriate for you. The Australian Government 5% Deposit Scheme is administered by Housing Australia on behalf of the Australian Government. Customers must be eligible for finance, which is at the discretion of authorised and participating lenders. To find out more, click here. Please note this is a guide only and information may be subject to change. All financial services are provided by Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN 65 079 545 378, Australian Credit Licence No. 385487.
Why do so many Homebuyers Centre customers use Resolve Finance?
Since 1997, Resolve Finance are construction finance experts and have been proudly supporting homebuyers in Victoria, helping more than 36,000 families build their dream homes. Their commitment extends beyond just home loans— offering a complete range of financial services.
At Resolve Finance, they’re here to guide you every step of the way, making sure you have a trusted advisor by your side. Their goal is simple: to be your finance partner for life.
Frequently Asked Questions
No. From 1 October 2025, the RFHBG merged into the Australian Government 5% Deposit Scheme. Regional buyers can still access similar benefits through the updated scheme.
The RFHBG was replaced by the unified Australian Government 5% Deposit Scheme, with regional-specific property price caps rather than separate RFHBG places.
Yes. Eligible home buyers can buy an existing home, build on vacant land, or purchase a house-and-land package in regional Victoria within the price cap.
The current cap is $650,000 for eligible regional Victorian postcodes. Visit the Housing Australia price cap tool to confirm.
No. The property you buy or build must be in an eligible regional postcode, and you must intend to live in it as your home.
Many first home buyers can use both together. Each has separate eligibility criteria. See our First Home Owner Grant Victoria information.
Yes. Homebuyers Centre builds in Ballarat, Bendigo, Gippsland and other regional locations. Always confirm caps via the official tool.
Yes, provided the total of land price and building contract is at or below $650,000 and meets all other scheme requirements.
Most regional Victorian postcodes use a $650,000 cap, while metropolitan Melbourne and Geelong have a $950,000 cap.
Learn how you could get into your new home sooner
Thinking about buying your first home? We’ve got you covered with everything you need to know. From the First Home Owner Grant in Victoria to the Home Guarantee Schemes, this guide will walk you through all the essential details.
5% Deposit Scheme
If you’re considering becoming a homeowner in Melbourne and its surrounds, there’s never been a better time. Eligible home buyers in this area can now secure a property with a deposit as low as 5%*—and the best part? You won’t need to pay Lenders Mortgage Insurance.
Family Home Guarantee (FHG)*
Eligible single parents or single legal guardians with at least one dependent child may be able to purchase a home with a deposit from as little as 2%* under the Australian Government 5% Deposit Scheme, without paying Lenders’ Mortgage Insurance.
Find out if you're eligible
Together with our partners at Resolve Finance, we will guide you through the process