Can you buy your first home with 5% deposit? Yes you can.

Saving for a deposit is hard.

With the increasing cost of living and higher rental costs for those waiting to jump into the market, it can be a slow process for first home buyers to save a reasonable deposit that would allow them to meet the bank criteria for buying a home.

The good news? Help could be at hand. From 1 October 2025, the Federal Government will expand the First Home Guarantee Scheme (FHGS) to allow more first home buyers to qualify.

What are the changes that you need to know about?

1) No cap on income - no matter what your income you can qualify as a single or couple

2) No limits on the number of scheme placements - all Australian first home buyers can apply

3) Increased property price caps - you can now buy up to $950k in Melbourne

With restrictions removed from the scheme, the Federal Government hopes to give more home buyers the chance to buy their first home with as little as a 5% deposit.

For many first home buyers, this could slash the time they need to wait to consider buying their first home.

Places in the scheme are available across 30 participating banks Australia wide. Speak to your broker to see which bank can assist you.