5% Deposit Scheme for First Home Buyers Starts October 2025 – What You Need to Know

What’s Changing?

• Earlier launch: The scheme will begin in October 2025, three months ahead of schedule.

• Expanded eligibility: All eligible first home buyers can now access the program—income caps have been removed.

• How it works: Buyers need only a 5% deposit; the government will guarantee up to 15% of the loan, helping them avoid paying LMI.

• Property price caps: New thresholds will now apply, varying by city:

  • Up to $1.5 million in Sydney

  • Up to $950,000 in Melbourne

  • Up to $1 million in Brisbane and ACT

Why This Matters

Faster Path to Home Ownership
This scheme eliminates the need to save a 20% deposit, enabling quicker market access—particularly in high-cost areas.

Greater Inclusivity
Removing income thresholds opens this opportunity to a broader swathe of first home buyers.

Wider Property Options
Increased caps let buyers target higher-value homes in major cities and some regions.

Potential Market Effects
Though boosting demand, economists expect only modest price impacts—especially if balanced with supply-side investments.

Supply-Side Measures Still Needed
Labor’s commitment includes $10 billion to build 100,000 new homes for first home buyers, with construction beginning from 2026–27 and occupancy by 2027–28.

How Mortgage Brokers Can Help You Get Ahead

Navigating the scheme efficiently takes expertise—rules vary by lender, and not all lenders participate.

At Mortgage Matrix, we:

• Access 40+ lenders, maximizing your chances of approval.

• Track participating lenders and up-to-date price caps by region.

• Prepare you to be scheme-ready the moment it goes live.

• Provide tailored support from application through to settlement.

In a competitive market, a savvy broker can be the difference between success and delay.

What It Means for You

If you've been saving for your first home, this initiative could dramatically change your path—especially in pricey cities like Sydney, Melbourne, and Brisbane.

At Mortgage Matrix, we specialize in helping first-home buyers harness government schemes, compare lenders, and secure competitive rates.

Next Steps

The scheme launches in October 2025, with high expected demand. Preparing now ensures you're ready to move quickly.

👉 Book your free appointment with Mortgage Matrix today, and let us help you unlock the 5% deposit scheme and the updated property caps plus save money and time.

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