Saving a 20% deposit can take years, but a federal government scheme is helping thousands of Australians buy sooner.
The expanded 5% Deposit Scheme has helped about 102,000 first home buyers since October 2025, according to new government figures.
Under the scheme, eligible buyers can purchase a home with a deposit as small as 5%, without paying lenders mortgage insurance (LMI).
For someone buying a national median-priced home, the estimated LMI saving is $23,700.
More buyers can now qualify
The government expanded the scheme last October by:
- Removing income limits.
- Removing the cap on places.
- Increasing property price caps.
That means more first home buyers may qualify than previously.
But there’s an important catch.
A smaller deposit means borrowing a larger proportion of the purchase price, which generally means higher repayments and more interest over the life of the loan.
Buyers must also meet lender requirements and have enough money for other purchasing costs.
The expanded scheme could bring home ownership closer than you think. Find out whether you’re eligible and what purchasing a property with a 5% deposit might look like.
