A practical guide to the Australian Government’s home ownership schemes designed to support eligible buyers to enter the property market.
Saving a deposit has traditionally been one of the biggest obstacles for first home buyers, but new Government support is available to help.
Changes to the 5% Deposit Scheme means more Aussies are now eligible. Picture: Getty
Recent changes to the 5% Deposit Scheme and the launch of the Help to Buy Scheme — mean more Australians are now eligible for assistance to buy a home with a smaller deposit and fewer upfront costs.
Here’s how the schemes work and who is eligible to apply.
What is the Australian Government 5% Deposit Scheme?
The Australian Government 5% Deposit Scheme, formerly called the Home Guarantee Scheme, helps eligible buyers purchase a home with a deposit as little as 5% of the property’s value.
The Scheme also includes a single parent stream, where single parents or single legal guardians of one or more dependents, can buy with as little as a 2% deposit.
The Australian Government will guarantee up to 15% of the property’s value for eligible home buyers and up to 18% under the single parent stream, which means buyers can avoid paying Lenders Mortgage Insurance (LMI). LMI is the premium lenders normally charge when a borrower’s deposit is less than 20% of the property’s value.
For example, for a $700,000 home, that’s a deposit of just $35,000, rather than the $140,000 normally required for a 20% deposit which will allow eligible participants to buy earlier.
Key eligibility criteria for the 5% Deposit Scheme
Recent changes have made the Scheme more accessible for a broader range of buyers.
You may be eligible if you:
- Are buying your first home or haven’t owned property or land in Australia in the last 10 years (with different requirements if you qualify for the single parent stream)
- Are an Australian citizen or permanent resident
- Will live in the property
- Have saved a minimum deposit of 5% (or 2% if you qualify for the single parent stream)
- Are purchasing a property within the relevant price cap for your location
The Australian Government expanded the 5% Deposit Scheme from 1 October 2025 to make it easier for more people to buy a home sooner. Key changes include:
- Income caps removed: There are no longer income restrictions, which means all first home buyers, no matter what they earn are now eligible
- No cap on scheme places: The previous cap on the number of scheme places has been lifted, meaning eligible home buyers can apply at a time that is right for them
- Property price caps increased: This change allows buyers to consider a wider range of homes, including in areas where property values have risen in recent years
What is the Help to Buy Scheme?
The Help to Buy Scheme is a new, shared equity scheme designed to help eligible buyers purchase a home of their own with a smaller deposit and smaller mortgage repayments.
Ensure you understand the criteria and how it might apply to you. Picture: Getty
Applications for the Scheme opened on 5 December 2025 and will support up to 40,000 households over four years from 2025-26.
Under the Scheme, the Australian Government contributes a portion of the purchase price of your home and holds that share as equity.
- For new homes, the Government can contribute up to 40% of the purchase price
- For existing homes, the Government can contribute up to 30% of the purchase price
Eligible buyers must provide a minimum 2% deposit of the home purchase price.
Buyers who are eligible to access the Scheme can choose to repay the Government’s share over time, in full, or when the property is sold.
Key eligibility criteria for the Help to Buy Scheme
You may be eligible if you:
- Are an Australian citizen aged 18 years or over
- Do not currently own any property in Australia or overseas, with some exceptions for single parents
- Will live in the property
- Have saved at least a 2% deposit of the property’s purchase price
- Earn $100,000 or less per year for single applicants, or $160,000 or less for joint applicants and single parents
- Are purchasing a property within the relevant price cap for your location
You cannot receive assistance from some types of government schemes to support the purchase – like a guarantee or other shared equity schemes. However, you can still access benefits such as stamp duty concessions and grants.
What type of properties are eligible?
Both schemes apply to a range of new and existing homes:
- Houses
- Townhouses
- Units and apartments
- Off-the-plan dwellings
- House-and-land packages
To qualify, the property must be within the relevant property price cap for its location.
Where to learn more
To help buyers understand what home ownership support is available to them, the Government has launched a dedicated website for first home buyers: firsthomebuyers.gov.au
If you're a first home buyer, the Australian Government has a dedicated website to help you understand the schemes. Picture: Getty
The site includes:
- A 5% Deposit Scheme eligibility checker and property price tool
- A Help to Buy eligibility checker and property price tool
These tools are designed to help home buyers understand their options, check eligibility, and take the next steps toward home ownership.
The Australian Government plays a central role in shaping housing policy and delivering programs that support affordable, and secure housing for Australians. Working in partnership with state and territory governments, the Australian Government sets national housing priorities, provides funding, and designs policy and programs in relation to housing affordability and supply, and homelessness.
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