Australian Government 5% Deposit Scheme to help first home buyers buy a home
Smaller deposits for first home buyers
How the Australian Government 5% Deposit Scheme is supporting first home buyers buy a home and build community
The concept of “home” can mean different things to different people. For some, it can mean security, for others it’s safety, and for many, “home” means belonging. When you buy a home, it’s more than the physical bricks and mortar. You’re creating a place for yourself and your family within the community.
The process can often seem like a long-term goal, but thanks to the Australian Government’s expanded 5% Deposit Scheme, more people are making their dream of buying their first home a reality.
“For newly arrived families, housing is not just shelter but is the very foundation for stability, participation and long-term belonging in Australia,” says Maria Dimopoulos, Chief Executive Officer of the Settlement Council of Australia (SCOA).
“Across our national network, we see the strong aspirations of migrant and refugee families to build secure futures and contribute to their communities. Initiatives like the Australian Government 5% Deposit Scheme can support these aspirations by opening pathways to home ownership. When families are able to put down roots, it strengthens social cohesion and reflects the best of modern Australia.”
The recently expanded 5% Deposit Scheme removes many of the upfront costs and barriers that can make buying a home seem unachievable. It’s bringing more people into more homes sooner, and is open to both Australian citizens and permanent residents.
Many are already participating in the scheme, including Shemil, a post-doctoral researcher originally from Sri Lanka.
Shemil expressed his gratitude for how the scheme helped him speed up his journey to home ownership, and helped him to feel more settled in his community.
When asked what it felt like to get the keys to his new home, he had this to say:
“My first thought was “Wow, I’ve done it!” I felt a sense of pride – because it’s something I’ve been able to work for and earn by myself.”
“To be honest, I never thought owning a home would be possible for me. It was a dream that I thought needed a stroke of luck to come true, and with the help of the 5% Deposit Scheme, now it has.”
“I didn’t know about the Australian Government schemes until my colleague told me. I think a lot of people may be eligible but don’t even realise they are, or they don’t know that the 5% Deposit Scheme is available to permanent residents, not just Australian citizens.”
Like Shemil, people across the country are discovering just how accessible the scheme is. To use it, you will need to:
- have saved a minimum deposit of 5% of the property value or 2% for single parents or legal guardians
- have not owned a property or land in Australia in the last 10 years, and
- plan to live in the home you buy.
The 5% Deposit Scheme also expanded in 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
More people in Australia now have access to schemes that help them buy a home.
Building a life in Australia helps people feel more settled and secure.
Unlock the door to your first home sooner with the Australian Government 5% Deposit Scheme.
To check your eligibility or to explore other government housing schemes, visit firsthomebuyers.gov.au
