More than 100,000 first home buyers have used the expanded 5% Deposit Scheme in its first year, including more than 28,000 in NSW, according to new figures from Housing Australia.
The Federal Government expanded the scheme to all first home buyers on 1 October 2025. It removed income caps, uncapped the number of places, and lifted property price limits.
The scheme lets eligible first home buyers purchase with a deposit of as little as 5 per cent of the purchase price.
Nationally, 102,594 first home buyers have used the scheme since it was expanded. In NSW, 28,158 have been supported in the past year, and 76,285 since Labor came to government in 2022.
More than 280,000 Australians have been supported through the scheme since 2022, and one in two first home buyers nationally now use a first home buyer scheme to get into the market.
“In just one year, more than 100,000 first home buyers have used the expanded 5% Deposit Scheme to get the keys to their first home,” said Minister for Housing, Homelessness and Cities Clare O’Neil.
A big part of the saving is lenders mortgage insurance (LMI), an extra cost many lenders charge buyers who do not have a 20 per cent deposit.
Based on median prices and a 5 per cent deposit, the Government says the scheme has saved buyers more than $2.5 billion in LMI since 2022, including $1.4 billion in the past year.
For a first home buyer purchasing the national median-priced home with a 5 per cent deposit, that is an estimated saving of around $23,700.
Saving for a deposit is one of the biggest barriers to owning a home, with some buyers saving for up to 11 years.
The Government says the scheme is performing strongly, with 99 per cent of borrowers ahead or on track with their repayments. Only 13 claims have been paid since it launched, and on average most people move off the scheme within two and a half years.
Prime Minister Anthony Albanese said the scheme was helping young Australians in particular.
“The expanded 5% deposit scheme removes barriers for first home buyers, helps them get into their own home faster and saves them tens of thousands of dollars,” Prime Minister Albanese said.
The Government has also pointed to its changes to capital gains tax and negative gearing, its 100,000 Homes for First Home Buyers program, and the Help to Buy shared equity scheme as part of its $47 billion Homes for Australia plan.
The Greens say the Government must find a solution for first home buyers caught out by the scheme.
“Thanks to Labor, first homebuyers risk being forced out of their homes, left with significant debt and no home to show for it,” said Leader of the Australian Greens Senator David Shoebridge.
“Labor created this problem and now they’ve got to fix it.”
The Greens say the timing of the scheme, followed by tax changes and rising inflation, has left first home buyers at significant risk of negative equity, with the banks the main beneficiaries.
“Labor’s 5% deposit scheme was reckless,” said Greens spokesperson for finance, housing and homelessness Senator Barbara Pocock.
“It has encouraged some of our lowest paid workers to take out very large loans at the top of the market.”
The Greens want the big banks to be required to offer low-interest mortgages to first home buyer owner-occupiers.
“Buying your first home is one of the biggest moments in anyone’s life, and this scheme is helping Australians get there sooner,” Minister O’Neil said.
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