From 1 October 2025, the Australian Government is overhauling the 5% Deposit Scheme (previously called the First Home Guarantee).
These updates make it easier, faster and more affordable for first home buyers to get into the property market.
Key Changes: Before vs After
| Feature | Before 1 Oct 2025 | From 1 Oct 2025 | What It Means |
| Scheme places | Limited spots each year | Unlimited places | No waiting list, anyone eligible can apply |
| Income caps | $125k single / $200k couple | No income cap | High earners now included |
| Property price caps | Lower, restrictive limits | Higher caps across states | More homes qualify |
| Regional vs general scheme | Separate regional scheme | Single streamlined scheme | Simpler, easier access |
| Paperwork | Needed ATO Notice of Assessment to reserve a spot | Not required | Faster applications |
Updated Property Price Caps (from 1 Oct 2025)
- NSW (Sydney & regional centres): $900k → $1.5m
- VIC (Melbourne & regional centres): $800k → $950k
- QLD (Brisbane & regional centres): $700k → $1m
- WA (Perth): $600k → $850k
- SA (Adelaide): $600k → $900k
- ACT: $750k → $1m
- Regional areas: $50k–$200k increases across most states.
Why This Matters for First Home Buyers
- Buy sooner – only a 5% deposit is needed without paying costly Lenders Mortgage Insurance (LMI)
- More choice – higher price caps mean more properties are eligible
- No income restrictions – buyers who previously earned too much now qualify
- Simpler process – unlimited places and less paperwork.
Ready to Take the Next Step?
With these changes, there’s never been a better time to explore your first home options. If you’re considering buying, getting the right advice and loan pre-approval is key.
Contact Allan Hall Finance to see how the new 5% Deposit Scheme could help you purchase your first home sooner.