First Home Buyer Deposit Scheme Update

Information in this article is general in nature and does not constitute financial or legal advice. Scheme details, eligibility criteria, and property price caps are subject to change. Always verify current information through Housing Australia and seek advice from a licensed mortgage broker or financial adviser before making decisions.

The Australian Government 5% Deposit Scheme: What First Home Buyers Need to Know

One of the biggest barriers to buying your first home isn’t income, it’s the deposit. Saving a standard 20% deposit while paying rent can take a decade or more. But thanks to a major government initiative, eligible first home buyers across Australia can now purchase their first home with as little as a 5% deposit, without paying Lenders Mortgage Insurance (LMI).

Here’s everything you need to know about the Australian Government 5% Deposit Scheme, including how it works, whether you’re eligible, and how it applies to buying in a Satterley community.

What Is the Australian Government 5% Deposit Scheme?

The Australian Government 5% Deposit Scheme (formerly known as the First Home Guarantee, and before that, the First Home Loan Deposit Scheme) is a federal government initiative administered by Housing Australia.

Under the scheme, the government guarantees up to 15% of a property’s value on behalf of eligible first home buyers. This means you only need a 5% deposit to secure a home loan, and you don’t need to pay LMI, which can otherwise cost thousands of dollars.

The guarantee is not a cash payment or grant, it’s a government-backed assurance to your lender that reduces their risk and allows them to approve your loan with a smaller deposit.

What Changed in October 2025?

The scheme has been significantly expanded since its original launch in 2020. As of 1 October 2025, the key changes are:

• No place limits: the scheme previously had an annual cap on the number of guarantees available. That cap has been completely removed. All eligible first home buyers can now apply.
• No income limits: the scheme previously restricted access to buyers on low-to-middle incomes. Income restrictions have been abolished entirely.
• Higher property price caps: the maximum property value eligible under the scheme has increased substantially across all states (see below).
• Simpler regional access: the former Regional First Home Buyer Guarantee has been merged into this single scheme, so regional buyers are covered under the same umbrella.

These changes make the scheme more accessible than at any point since its launch.

Am I Eligible?

To be eligible for the scheme, you generally need to:

• Be an Australian citizen or permanent resident aged 18 or over
• Be a first home buyer. You must not have previously owned property in Australia
• Be purchasing the property as an owner-occupier (you must intend to live in it)
• Have a minimum 5% deposit saved (genuine savings)
• Purchase a property within the applicable price cap for your location

There are no income limits under the current scheme.

For a full eligibility check, use the Housing Australia Eligibility Tool.

What Are the Property Price Caps?

The property price cap is the maximum purchase price eligible under the scheme for your location. From 1 October 2025, the caps relevant to Satterley communities are:

Can I Use the Scheme for a House and Land Package?

Yes. The scheme applies to house and land packages, which is great news if you’re building your first home in a Satterley community. Both of the following purchase structures are eligible:

• House and land package: a single contract covering both land and the build
• Land and separate build contract: where you purchase the land and engage a builder separately

Both titled and untitled land are eligible under the scheme.

Can I Stack This with Other Grants and Concessions?

Yes, and this is one of the most powerful aspects of the scheme for first home buyers. You can combine the Australian Government 5% Deposit Scheme with:

• First Home Owner Grant (FHOG): a one-off cash payment available in each state for new home purchases:
  • WA: $10,000
  • VIC: $10,000
  • QLD: $30,000 (for contracts signed before 30 June 2026)
• State stamp duty concessions: for example, in Victoria, first home buyers pay no stamp duty on properties valued at $600,000 or less, with a concession available up to $750,000.
• First Home Super Saver Scheme (FHSS): lets you save up to $50,000 through your super fund to use toward your deposit, with tax advantages.

Using these schemes together can significantly reduce both your upfront deposit requirement and your overall purchase costs.

How Do I Apply?

The scheme is accessed through participating lenders; the government provides the guarantee, but your mortgage is arranged directly with the lender.

There are over 30 participating lenders, including major banks and a wide range of regional and customer-owned banks. You apply for your home loan through the lender as normal, they’ll submit your application to Housing Australia for the guarantee.

Steps to get started:

1. Check your eligibility using the Housing Australia Eligibility Tool
2. Check the property price cap for the area you’re looking to buy in
3. Contact a participating lender or mortgage broker to discuss your options
4. Find your community. Once your finance is in order, explore available land in your preferred Satterley community

For the full list of participating lenders, visit housingaustralia.gov.au.

What Does This Mean for Buying in a Satterley Community?

At Satterley, we create masterplanned communities across Western Australia, Victoria, and Queensland, designed for people who want more than just a house. Our communities are built around connection, convenience, and liveability, with parks, walking trails, schools, and local amenities woven into every neighbourhood.

For first home buyers, the combination of the 5% Deposit Scheme and Satterley’s range of house and land packages makes homeownership genuinely achievable. With the expanded scheme price caps now covering the majority of our communities, more buyers than ever are eligible.

Our Sales Professionals are experienced in helping first home buyers understand their finance options, including how to make the most of the available grants and schemes. We’re here to help, not just sell.

Explore available land and communities across WA, VIC and QLD, or get in touch with our team to start the conversation.