The Albanese Government has brought forward the launch of its expanded 5 % deposit scheme to 1 October 2025, accelerating access by three months. Originally slated for implementation in early 2026, this forward-shift is aimed at helping more first home buyers enter the property market sooner.
Key highlights of the updated scheme include:
- Universal eligibility — the scheme is now open to all first home buyers, with no income or placement caps
- Higher property price caps aligned with market levels, for example:
- Sydney: rising from $900,000 to $1.5 million
- Rest of NSW: from $750,000 to $800,000
- No Lenders Mortgage Insurance (LMI) — the government guarantees the loan portion beyond the 5 % deposit, saving homebuyers tens of thousands in insurance costs.
- Projected financial benefits — the first year alone could see buyers save around $1.5 billion in LMI costs.
Industry perspectives:
- Clare O’Neil, Housing Minister, emphasised the generational significance of the policy: “It’s just not right that an entire generation… have been locked out of the housing market… So Labor’s changing it.”
- Jocelyn Martin, Managing Director of HIA, commented that removing the 50,000 cap unlocks opportunity for far more buyers, especially younger and regional Australians. Over one-third of prior guarantees served regional buyers, and younger buyers are increasingly represented.
- Mike Zorbas, CEO of Property Council of Australia, stressed the urgency of the reform, given the rising average age of first home buyers: “Every available lever must be pulled to get more young people into home ownership.”
Source: Broker Daily – Government brings 5% deposit scheme forward
What This Means for You?
Now is the time to act. With the 5% deposit scheme brought forward to 1 October 2025, there’s a window of opportunity to help more Australians into home ownership sooner.
- Talk to our team today to see how these changes could benefit you or your clients.
- Understand the new property price caps and what they mean in your area.
- Get expert guidance on how to take advantage of the savings on Lenders Mortgage Insurance.
- Be prepared for a competitive market with the right finance strategy in place.
Contact one of our Lending Advisors today and take the first step towards securing your home under the new 5% deposit scheme.
