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Matthew Stack
Senior Mortgage Broker
The Australian Government 5% Deposit Scheme is the current public-facing name for the former Home Guarantee Scheme / First Home Guarantee context. Eligible first home buyers may be able to purchase with a minimum 5% deposit, subject to scheme conditions and lender approval.
What is the Australian Government 5% Deposit Scheme?
The official scheme information states there are no income caps, no waitlists and no Lenders Mortgage Insurance under the scheme conditions. The government guarantee is to the lender, not cash paid to the buyer. The borrower remains responsible for repayments and purchase costs.
A participating lender manages pre-approval and final approval. Eligibility and a 5% deposit do not guarantee approval; the lender still assesses the application, property, valuation, documents and current circumstances under its credit policy.
Who may be eligible?
Core considerations include Australian citizenship or permanent residency, being at least 18, a minimum 5% deposit, first-home buyer status or no property or land ownership in Australia in the previous 10 years, owner-occupier use, a principal-and-interest owner-occupier loan through a participating lender, and a property at or below the relevant cap. Applicants may apply alone or jointly with one other person.
Property price caps: postcode and valuation both matter
Both the purchase price and the home value assessed by the participating lender must be at or below the relevant cap. For vacant land and separate build contracts, total land price plus build costs must be under the cap. The postcode search tool is a guide; confirm the specific property with a participating lender.
Location | Capital city and regional centres | Other areas |
|---|---|---|
NSW | $1,500,000 | $800,000 |
Victoria | $950,000 | $650,000 |
Queensland | $1,000,000 | $700,000 |
Western Australia | $850,000 | $600,000 |
South Australia | $900,000 | $500,000 |
Tasmania | $700,000 | $550,000 |
ACT | $1,000,000 all areas | — |
NT capital city | $750,000 | — |
NT rest of Territory | $600,000 | — |
Jervis Bay Territory & Norfolk Island | $550,000 | — |
Christmas Island & Cocos (Keeling) Islands | $400,000 | — |
Regional centres listed in the federal source include Central Coast, Coffs Harbour–Grafton, Illawarra, Mid North Coast, Richmond–Tweed, Newcastle and Lake Macquarie in NSW; Geelong in Victoria; and Gold Coast and Sunshine Coast in Queensland.
Pre-approval and your real funds to complete
Once pre-approved, the official scheme information states that a buyer has 90 days to find a home and sign a contract of sale. Confirm current timing and conditions with a participating lender. Pre-approval is not final approval.
A 5% deposit does not mean 5% is the only amount needed. Exact funds to complete may include the deposit, state or territory duty, legal and conveyancing costs, lender fees, valuation requirements and property-specific costs.
The scheme cap and stamp duty are separate tests
The federal property cap and state or territory first-home buyer duty concessions are separate tests. Exact duty and funds-to-complete calculations require the address or postcode, purchase price, contract date, property type, ownership history, residency plans and lender assessment.
State and territory stamp duty: high-level guidance
State and territory rules can change independently of the federal scheme. Use the current revenue-office calculator and obtain conveyancing or legal advice for the specific contract.
State or territory | High-level guidance from supplied official research |
|---|---|
NSW | For contracts exchanged on or after 1 July 2023: full exemption up to $800,000; concession above $800,000 and below $1 million. Vacant land: exemption to $350,000 and concession above $350,000 to below $450,000. Confirm contract-date, residence and applicant rules. |
Victoria | No duty for an eligible first-home buyer to $600,000; reduced duty from $600,001 to $750,000. New, established and vacant land may be eligible, subject to occupancy and other conditions. |
Queensland | First home concession for a home under $800,000; a home at $700,000 or under can have no duty for agreements from 9 June 2024. Supplied examples for 1 August 2026: $650,000 = $0, $730,000 = $6,555, $850,000 = $24,100 under the home concession only. |
Western Australia | Supplied WA research states from 7 May 2026: $0 duty to $600,000, then a concessional calculation from $600,001 to $800,000. Verify current RevenueWA rules. |
South Australia | Relief may apply to eligible first home buyers for new homes, off-the-plan apartments and vacant land, with caps depending on contract date. Prior ownership can prevent eligibility for contracts on or after 13 February 2025. |
Tasmania | The First Home Owner Grant may apply to eligible buyers of new residences. Established-home duty relief to $750,000 applied only for settlements between 18 February 2024 and 30 June 2026; do not assume it remains available after that date. |
ACT | From 1 July 2026, eligible buyers may be exempt under the Home Buyer Concession Scheme. All ACT residential property types are included and the income threshold is removed, subject to ownership and occupancy requirements. |
Northern Territory | The House and Land Package Exemption may apply for a single-transaction package under a contract signed from 1 July 2022 to 30 June 2027. It has no means test or property-value cap in the supplied source, but is not a blanket established-home exemption. |
A practical first-home checklist
1. Confirm the postcode cap
Use the scheme tool as a guide, then ask a participating lender to confirm the relevant cap for the specific property and lender-assessed value.
2. Estimate duty and upfront costs
Use the current state or territory calculator and include the property, contract date, ownership history and residency plans.
3. Review your deposit and documents
A 5% deposit may be relevant for eligible applicants, but the lender will still assess the application and documents.
4. Seek pre-approval before making offers
A participating lender can assess whether the scheme and loan may fit your position. Final approval remains subject to lender criteria and the property.
Want to confirm your eligibility, stamp duty and exact funds to complete?
Speak with Matthew Stack at Fetch My Home Loan. A conversation can help you understand the scheme conditions, confirm the property cap to investigate, review likely duty and upfront costs, and prepare for a participating lender assessment.
Phone: 0423 237 242 | Email: matthew@fetchmyhomeloan.com.au | Book a conversation | Read more guides | Visit the homepage
General information disclaimer: This article is general information only and does not constitute personal financial, credit, legal, tax or accounting advice. Scheme rules, lender criteria, property price caps, duty rules, fees, terms and government policies can change. Eligibility, approval and benefits are not guaranteed. Confirm current scheme information with a participating lender and obtain professional advice before making a decision.
FAQs
Can I use the Australian Government 5% Deposit Scheme with a 5% deposit?
Does the 5% Deposit Scheme remove stamp duty?
Does pre-approval guarantee my loan or a place in the scheme?
How long do I have to find a property after scheme pre-approval?
How do I confirm my exact funds to complete?
You may be eligible to buy with a minimum 5% deposit under the scheme, subject to the scheme conditions, relevant property price cap, participating-lender requirements and final lender approval.
No. The federal scheme and state or territory duty concessions are separate tests. Duty depends on the property, purchase price, contract date, ownership history, residency plans and current local rules.
No. Pre-approval is not final approval. The participating lender manages final approval and assesses the property, valuation, documents and current circumstances.
The official scheme information states that, once pre-approved, a buyer has 90 days to find a home and sign a contract. Confirm the current timing with a participating lender.
A broker and participating lender can help review the address or postcode, price, deposit, duty, upfront costs and lender requirements. A conveyancer can also help with duty and contract-specific calculations.
Related articles
First Home Buyer Pre-Approval: What It Means and When to Start
Pre-approval helps you understand how much you may be able to borrow before you start making offers. It is not a final approval, but it can make your next steps clearer.
First Home Loan Pre-Approval: Why You Shouldn’t Wait to Get Pre-Approved
Getting pre-approved early can help a first home buyer understand borrowing capacity, identify potential problems and be ready to act when the right property comes along.
If you want to know how much you can borrow, what deposit you need and which home loan options may suit you, speak with Matthew Stack at Fetch My Home Loan.
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Contact Matthew Stack
Matthew Stack, Senior Mortgage Broker at Fetch My Home Loan. Call 0423 237 242 or book a call to talk through your borrowing capacity, deposit options and next steps.
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