The Home Guarantee Scheme changed to the Australian Government 5% Deposit Scheme from 1 October 2025. Make sure to check any updates to eligibility that may apply.

The Australian Government 5% Deposit Scheme run by the Federal Government is expanding so more people can use it.

• No cap on income. Before 1 October if you earned above an amount as a single or combined purchasers you would not be eligible for a place.
• No cap on number of people using the Scheme. Previously, a maximum of 50,000 places were available each year.
• House price cap increased. In Melbourne and Geelong the eligible price cap was increased from $800,000 to $950,000.
• Regional homes remain capped at $650,000.

Both are designed to help you purchase a home, but they offer different ways to support you.

The Australian Government 5% Deposit Scheme helps eligible first home buyers purchase a home with a 5% deposit. You take out a mortgage for the other 95% of the price and pay it back.

Usually, you’d need to pay Lenders Mortgage Insurance (LMI) if purchasing with less than 20% deposit. But this cost is avoided under the Scheme.

There are different options under the Australian Government 5% Deposit Scheme depending on your circumstances (Couple, Single, Single with Dependent Child). The options have varied deposit guarantee amounts.

The Victoria Government support may include one or more of the following, subject to eligibility:

• A first home owners a grant of $10,000 (FHOG)
• Waive all or part of the stamp duty cost (a State Government tax)

Note: These programs contain criteria relating to eligibility and restrictions.

Need some assistance? You can contact our Broker Partner (Mortgage Domayne) or one of our Land Sales Consultants. Just let us know.

There’s an eligibility tool on the relevant government websites:

• Australian Government 5% Deposit Scheme (Federal Government)
• VIC Stamp Duty Exemption or Concession

Yes! That’s a joint application, which covers any two people applying for the scheme together.

Whether you’re good friends or been married for a while. All the same.

You both must satisfy the eligibility requirements of both the lender and the scheme.

Need some assistance? You can contact our Broker Partner (Mortgage Domayne) or one of our Land Sales Consultants. Just let us know.

Yes. The Australian Government 5% Deposit Scheme can be used with Victorian Government’s First Home Owner Grant (FHOG).

They benefit eligible first home buyers in different ways:

• The FHOG is $10k given directly to eligible applicants as a once-off grant. However, this can be used by the lender when assessing your deposit contribution and borrowing capacity.
• The Australian Government 5% Deposit Scheme means you only need a 5% deposit on a property priced up to $950,000 in Melbourne and Geelong. No money changes hands. The Federal Government guarantees the loan so you don’t have to pay Lenders Mortgage Insurance.

Australian Government 5% Deposit Scheme – No.
First Home Owner Grant – No.
Stamp Duty concession or exemption – No.

There is great information on government websites:

• Australian Government 5% Deposit Scheme, Housing Australia
• First Home Owner, State Revenue Office Victoria

Need some assistance? You can contact our Broker Partner (Mortgage Domayne) or one of our Land Sales Consultants. They will be able to help you map out the process ahead and put you in contact with specialist services.

It’s an extra charge from a lender that may be required if you do not have a deposit that is 20% of the purchase price.

It’s expensive. It could be tens of thousands of dollars on a $650k home.
Often, it’s charged up front and added into the total loan amount to be paid back in the mortgage repayments.

Lenders Mortgage Insurance helps the bank or lender protect itself against the risk of a borrower defaulting and not being able to pay back the loan.

This is a key feature of the Australian Government 5% Deposit Scheme. The Scheme provides the guarantee so lenders are covered if there’s a default, and borrowers can still get a loan with as little as 2 or 5%.

You can start looking immediately and talk to our Team about a house and land package that would fit your needs – we have tailored packages suitable for the Scheme, but stock is limited so don’t miss out!

We recommend contacting us at the same time to start the eligibility process and understand what’s ahead.

Combined with other first homebuyer programs, you could be in your first home for less money up front while saving on taxes and insurance.

Need some assistance? You can contact our Broker Partner (Mortgage Domayne) or one of our Land Sales Consultants. Just let us know.

Yes, you are still eligible. 5% of the property purchase price is the minimum you need to use the scheme, along with other eligibility criteria.

The Australian Government 5% Deposit Scheme is managed by Housing Australia, an agency of the Federal Government set up to manage housing initiatives.

Stamp Duty exemptions and the First Home Owner Grant (FHOG) are run by Victoria’s State Revenue Office.

Yes, you do. The Australian Government 5% Deposit Scheme is designed to get more First Home Buyers living in a home they own.

This will be a condition of other applicable government programs.

Some suggested examples:

• Can you check our eligibility for the 5% Deposit Scheme, Victorian First Home Owner Grant, Stamp Duty exemption and any other applicable government support programs for buying a home?
• How much can we afford to borrow?
• What will the repayments likely be for the amount we plan to borrow?
• What happens if interest rates increase?
• Do the available lenders offer mortgages for house and land packages?
• When do we start paying the mortgage?
• How do we ensure that we remain eligible for the government support programs until we’ve decided on a home?
• What paperwork do you need to get started?
• What is my notice of assessment (NOA)?
• Any other questions relevant to your personal financial circumstances.