First-Home Buyer Boost: Australian Government 5% Deposit Scheme Passes 320,000 Australians Helped

There is encouraging news for Australians working towards their first home. The current Australian Government 5% Deposit Scheme information confirms that more than 320,000 Australians have now been helped into home ownership since the scheme commenced in 2020.

That milestone is particularly relevant for Perth first-home buyers because the scheme can substantially reduce one of the biggest barriers to entering the property market: the upfront deposit.

Under the current rules, eligible first-home buyers can purchase with a minimum 5% deposit, while eligible single parents and legal guardians may qualify with a deposit from 2%. The Australian Government provides a guarantee to participating lenders, allowing eligible borrowers to avoid Lenders Mortgage Insurance (LMI).

Importantly, changes introduced from 1 October 2025 removed the previous income caps and limits on the number of scheme places. There is now no waitlist, while higher property-price caps have broadened the range of homes that can potentially qualify.

For prospective Perth buyers, that doesn’t mean everyone with a 5% deposit will automatically qualify for a mortgage. Participating lenders still assess income, expenses, debts, credit history, borrowing capacity and the proposed property. Scheme eligibility requirements and applicable property-price caps also need to be satisfied.

A smaller deposit also generally means borrowing a larger proportion of the property’s value, so buyers should carefully consider repayments and their financial buffer.

However, the 320,000-plus milestone demonstrates how significant low-deposit pathways have become for Australian home buyers.

If buying your first Perth home is part of your plan, understanding your eligibility, borrowing capacity and lender options before attending home opens can make the process considerably clearer.

Naga Mortgage Brokers can help first-home buyers understand their borrowing position and compare suitable home-loan options, including participating-lender pathways where eligible.

General information only. Scheme and lender eligibility criteria apply. Fees and charges may apply.