At BDJ, we’re dedicated to helping our clients achieve their financial goals. For many Australians, that includes the dream of home ownership. We’ve been receiving a lot of questions about the Australian Government’s 5% Deposit Scheme and how it may help you enter the property market.
How the scheme can help you
Buying a home can be tough, especially saving for a 20% deposit. That’s where the Australian Government 5% Deposit Scheme comes in.
Formerly known as the Home Guarantee Scheme, this initiative is designed to help eligible home buyers purchase a home sooner.
Under the scheme, Housing Australia provides a “guarantee” to a participating lender. This guarantee acts as a form of security for a portion of your home loan, allowing you to secure a home loan with a much smaller deposit, in some cases, as little as 2% or 5% – without having to pay Lenders Mortgage Insurance (LMI).
New changes to the scheme were implemented from 1 October, making it easier for first-time buyers to get into the market.
The new rules remove income restrictions and increase the property price caps, a move that will dramatically expand the number of eligible homes under the scheme.
Previously, the scheme had strict income limits: $125,000 for single applicants and $200,000 for couples. These caps will be completely removed, opening up eligibility to a much wider range of Australians.
While the income limits are gone, it’s important to remember that other key eligibility requirements remain in place.
New property price caps – capital cities & regional centres
| State/Territory | Former price cap | New price cap |
| NSW | $900,000 | $1,500,000 |
| VIC | $800,000 | $950,000 |
| QLD | $700,000 | $1,000,000 |
| WA | $600,000 | $850,000 |
| SA | $600,000 | $900,000 |
| TAS | $600,000 | $700,000 |
| ACT | $750,000 | $1,000,000 |
| NT | $600,000 | $600,000 |
Published 8 October, 2025