The 5% Deposit Scheme, formerly the First Home Guarantee
Buy your first home with a 5% deposit and pay no Lenders Mortgage Insurance, because the Australian Government guarantees part of your loan.
| State | Capital city and regional centres | Rest of state |
|---|---|---|
| Western Australia | Perth: $850,000 | $600,000 |
| Victoria | Melbourne, Geelong: $950,000 | $650,000 |
| Queensland | Brisbane, Gold Coast, Sunshine Coast: $1,000,000 | $700,000 |
Check your postcode with the government's price cap tool.
Who can use it
- Australian citizens or permanent residents aged 18 or over.
- First home buyers, or people who haven't owned a home or land in Australia in the last 10 years.
- Buyers applying alone or jointly with one other person, such as a partner, friend or family member.
- Owner-occupiers taking a principal and interest loan of up to 30 years from a participating lender. You can have up to three more years to build.
Single parents and legal guardians may be able to buy with a 2% deposit under the same scheme. You still have to meet the lender's own rules, so qualifying for the scheme doesn't guarantee a loan.
What it saves, and what it costs
You skip Lenders Mortgage Insurance, and you can buy years sooner. In return, you start with a bigger loan, so you pay more interest and have less equity if prices fall. Run your repayments through our borrowing calculator first.
Common questions
Is the First Home Guarantee the same as the 5% Deposit Scheme?
Yes. The First Home Guarantee was expanded on 1 October 2025 and now runs as the Australian Government 5% Deposit Scheme.
Is there an income limit?
No. The income caps and the limit on places were removed from 1 October 2025.
Can I build a new home with it?
Yes. You can buy new or existing homes, house and land packages or off-the-plan, or buy vacant land with a building contract. The land and build together must be at or under the cap.
Can I use it with a grant?
Often, yes. It can work alongside state grants and duty concessions if you meet each set of rules. You can't use it with Help to Buy.
Checked 4 November 2026. Official sources: firsthomebuyers.gov.au ยท scheme fact sheet. Rules change, so confirm before you sign.