27/11/2025
The 5% Deposit Scheme has quietly become one of the most powerful tools first home buyers have – and the latest expansion is a genuine game-changer.
From 1 October, the scheme now offers unlimited places and no longer has income caps. Eligible buyers can purchase with just a 5% deposit and avoid the large cost of lenders’ mortgage insurance (LMI), provided the property sits under your location’s price cap (from $500,000 in regional South Australia up to $1.5 million in Sydney).
The interesting shift isn’t just the expanded access – it’s how it’s expected to reshape competition. Without income caps, higher-earning couples who were previously excluded can now enter popular markets, which may push more demand into price ranges just under the caps.
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