Australian Government 5% Deposit Scheme: Key Changes from October 2025
Introduction to the 5% Deposit Scheme
The Australian Government is updating the Home Guarantee Scheme to make homeownership more accessible for first home buyers and single parents. From 1 October 2025, the scheme will be rebranded as the Australian Government 5% Deposit Scheme, allowing eligible buyers to purchase a home with just a 5% deposit. This initiative removes barriers like income caps and offers unlimited places, helping more Australians enter the property market sooner. At Professional Home Loans, we’re here to guide you through these changes and help you secure the best loan options.
Key Changes from 1 October 2025
Starting 1 October 2025, the scheme introduces significant updates to simplify access:
- Rebranding: The Home Guarantee Scheme becomes the Australian Government 5% Deposit Scheme.
- First Home Guarantee: Renamed the General Stream.
- Family Home Guarantee: Renamed the Single Parent Stream.
- No Income Caps: Previously $125,000 for singles or $200,000 for couples; now unlimited.
- Unlimited Places: No more limited spots—open to all eligible applicants.
Eligibility and Documentation Updates
The scheme maintains a 5% minimum deposit but simplifies eligibility:
| Category | Pre-1 October 2025 | From 1 October 2025 |
|---|---|---|
| Income Caps | $125,000 single / $200,000 couple | No income caps |
| Scheme Places | 35,000 First Home Buyer Guarantees / 10,000 Regional / 5,000 Family Home Guarantee | Unlimited Single Parent Stream and General Stream places |
| Choosing the Right Guarantee for Single Parent Customers | If eligible, select Family Home Guarantee; else First Home Guarantee | If eligible, select Single Parent Stream; else General Stream |
| Choosing the Right Guarantee for Regional Customers | If eligible, Regional First Home Buyer Guarantees available until 30 September | Select General Stream |
| Documentation Requirements | Notice of Assessment required | Notice of Assessment not required to reserve a Scheme place |
Updated Property Price Caps from 1 October 2025
Property price caps have been revised to reflect market changes. Both purchase price and property value must not exceed the cap:
| Location | Pre-1 October 2025 | From 1 October 2025 |
|---|---|---|
| NSW – capital city & regional centre | $900,000 | $1,500,000 |
| NSW – other | $750,000 | $800,000 |
| VIC – capital city & regional centre | $800,000 | $950,000 |
| VIC – other | $650,000 | $650,000 |
| QLD – capital city & regional centre | $700,000 | $1,000,000 |
| QLD – other | $550,000 | $700,000 |
| WA – capital city | $600,000 | $850,000 |
| WA – other | $450,000 | $600,000 |
| SA – capital city | $600,000 | $900,000 |
| SA – other | $450,000 | $500,000 |
| TAS – capital city | $600,000 | $700,000 |
| TAS – other | $450,000 | $550,000 |
| ACT | $750,000 | $1,000,000 |
| NT | $600,000 | $600,000 |
| Jervis Bay Territory & Norfolk Island | $550,000 | $550,000 |
| Christmas Island & Cocos (Keeling) Islands | $400,000 | $400,000 |
How to Apply for the 5% Deposit Scheme
Ready to take advantage of the 5% Deposit Scheme? Start by speaking with one of our expert brokers at Professional Home Loans. Our team is dedicated to guiding you through every step, from assessing your eligibility to securing the perfect loan. We compare policies and rates from participating lenders, ensuring we find the best option tailored to your financial situation and goals. From 1 October 2025, the Notice of Assessment is not required to reserve a place, simplifying your journey. Use the Eligibility Tool and Postcode Search Tool on the official website for initial checks.
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Benefits for First Home Buyers
This scheme opens doors for more buyers by eliminating income barriers and providing unlimited spots. With a 5% deposit, you can enter the market sooner, especially with updated price caps accommodating higher property values in major areas. At Professional Home Loans, we can help you navigate these changes and secure the best loan options tailored to your needs.
Ready to take advantage of the 5% Deposit Scheme? Book a Free Consultation with our experts today!