New data from Housing Australia shows that more than 300,000 Australians have now bought or built their own home with support from the Australian Government 5% Deposit Scheme since it was launched in 2020.
Instead of needing a traditional 20% deposit, eligible buyers can enter the market with as little as 5% of the purchase price.
The government guarantees part of the loan so buyers avoid paying Lenders Mortgage Insurance (LMI), which might have added thousands to upfront costs.
Why this matters for buyers right now
Saving a full 20% deposit can take years. During that time, property prices can shift, and people can find themselves constantly trying to catch up.
For many buyers, the shift from a 20% deposit to 5% can mean:
- Entering the market years earlier
- Reducing the risk of being priced out
- Redirecting savings toward the home itself rather than additional costs
What this looks like in Melbourne’s north
Melbourne’s northern growth corridor — including Donnybrook, Craigieburn, and Wollert — is a popular area for first home buyers.
This aligns with broader growth trends in the City of Whittlesea, where the population is expected to increase significantly in the coming years, driven largely by young families and new homeowners entering the market.
Melbourne's north offers:
- Greater availability of new land
- Access to house and land packages
- Price points that are more accessible than inner or middle-ring suburbs
House and land searches climb to four-year high as buyer confidence improves
“The number of buyers looking to build or purchase a new home has surged, with activity reaching the highest levels seen in four years,” Anne Flaherty, senior economist at REA Group, writes on realestate.com.au.
Search activity for new homes has risen to its highest level since early 2022, reflecting renewed buyer confidence and strong interest in building or purchasing brand-new homes.
The data suggests that Australians are actively exploring the option of building or purchasing new homes, particularly in growth areas.
The bigger picture: why support schemes are expanding
Government support for first home buyers isn’t happening in isolation — it reflects broader housing demand across Australia.
In fast-growing regions like Melbourne’s north, population growth is driving the need for more housing. The City of Whittlesea is projected to grow significantly by 2040, with a high proportion of families and younger households entering the market.
- Demand for affordable housing continues to increase
- New housing supply is concentrated in growth corridors
- Infrastructure and communities are expanding alongside new developments
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