The New 5% Deposit Home Loan Scheme Australia: What It Means for Buyers

A major policy shift is on the horizon: starting 1 October 2025, the Government has announced the launch of the 5% deposit home loan scheme Australia for all first-time home buyers — removing income caps and significantly increasing property price limits.

What’s Changing – And Why It Matters

• Lower Deposit, Easier Access

  Buyers can secure their first home with just a 5% deposit and no Lenders Mortgage Insurance (LMI).

  
  

• Higher Property Price Caps Nationwide

  Sydney: up to ~$1.5 million

  Melbourne: ~$950,000

  Brisbane/ Gold Coast: ~$1 million

  
  

• No More Income or Regional Caps

  Previously limited to low- and middle-income earners, the expanded scheme is now open to all eligible first home buyers across Australia.

  
  

• Big Savings Expected

  Early analysis suggests buyers could save tens of thousands in LMI fees and years off saving for a deposit.

  
  

  Who Can Benefit?

  
  

  The scheme is particularly appealing to first-home buyers and young families who may find it difficult to save a traditional 20% deposit. With the 5% deposit home loan scheme Australia, the government essentially acts as a guarantor, reducing the need for costly lenders mortgage insurance (LMI). This could save buyers tens of thousands of dollars.

  
  

Things to Consider (Before You Rush In)

While it’s a game-changer, there are important questions to ask yourself:

• Does this affect the local property market?

  Increased demand under low-deposit schemes may push up prices — especially in markets with limited housing supply.

  
  

• How will it impact your borrowing capacity?

  You’ll need to factor in a higher loan amount — and potentially higher repayments over time.

  
  

• Which lenders are participating?

  Not all banks or loan products support this. Knowing who qualifies can be one of the biggest challenges.

  
  

• What’s the timeline and eligibility?

  The scheme launches soon — but space is limited. Knowing your pre-approval options and eligibility guidelines early could be the difference.

  
  

Why Working with a Local Mortgage Broker Makes a Difference

At Gold Coast Lending Services, we’ll help you:

• Navigate lender policies and access the most suitable loans for your situation

• Understand local property dynamics and pricing trends on the Gold Coast

• Assess whether the 5% deposit scheme truly aligns with your goals and budget

• Time your application for the best chance at success, without overspending or overcommitting your budget

What to Do Next

The 5% deposit scheme represents a rare opportunity — but it’s also complex. Now’s the time to start preparing:

• Get clarity on your borrowing capacity

• Explore lender eligibility and the paperwork required

• Lock in pre-approval if you're ready to take the next step

Want advice that’s tailored to your financial profile and local property market dynamics? Contact Gold Coast Lending Services today for a no-obligation consultation — let’s make sure you benefit from this opportunity with confidence.