Your first home · A practical Victorian guide
5% Deposit Scheme:
your first home, explained.
A guide to the Australian Government 5% Deposit Scheme for eligible buyers. Scheme eligibility, property requirements and Participating Lender credit approval apply.
Briganti Money client reference · Updated 30 September 2026
Based on the government fact sheet and First Home Buyers Information Guide dated 1 July 2026, and official sources below.
Start with the distinction
A loan guarantee, not a cash grant.
The Australian Government provides backing to a Participating Lender to support eligible low-deposit home loans. The guarantee is provided to the Participating Lender — it is not a cash payment or deposit paid to you.
The guarantee supports the lender and does not guarantee that a home loan will be approved. You remain responsible for your mortgage repayments and other loan costs.
Save your deposit
Eligible first home buyers need savings of at least 5% of the lender-assessed Property Value, subject to Scheme and lender requirements.
Get assessed
The lender checks both Scheme eligibility and whether the loan is affordable for you.
Buy a home to live in
You must buy the home to live in, move in within the required timeframe and continue to occupy it while your loan is supported by the Scheme.
Could it fit your situation?
Who can use the Scheme?
First home buyers · minimum 5%
- An Australian citizen or permanent resident, and at least 18 years old at the relevant Home Loan Date.
- Buying an owner-occupied home, not an investment property, within the applicable property price cap.
- Applying for an eligible owner-occupier home loan through a Participating Lender.
- Have saved at least 5% of the lender-assessed Property Value. Generally, you must have less than a 20% deposit available after relevant purchase costs; a loan is not eligible if you have 20% or more available after those costs.
- A first-home buyer, or have not held a relevant property interest in Australia in the 10 years before the Home Loan Date.
- Apply alone or jointly with one other person only. Both applicants must meet the relevant Scheme eligibility requirements.
- Meet the Participating Lender’s lending policy, serviceability requirements and final loan approval criteria.
The Home Loan Date is when you sign your home loan agreement; confirm the relevant date with your lender. Relevant property interests include freehold property or land, leases of 50 years or more and company title interests, including commercial or investment property.
Meeting Scheme eligibility criteria does not guarantee that a Participating Lender will approve a home loan.
An owner-occupier principal-and-interest loan from a Participating Lender is required, generally up to 30 years, with up to three additional years to build a new home.
Single parents & guardians · minimum 2%
Single parents or legal guardians with a dependent child may have access to a separate 2% deposit pathway, subject to the applicable Scheme eligibility criteria, including applying individually rather than jointly and not holding another property interest once the new home settles.
- Apply individually, rather than jointly.
- You do not have to be a first-time buyer.
- You cannot retain another home or property interest when your new home settles.
Confirm the current criteria with a Participating Lender before relying on this option. Check the full single-parent criteria →
Know your buying limit
Victorian property price caps
| Location | Maximum property price / value |
|---|---|
| Melbourne and Geelong (as defined by the Scheme) | $950,000 |
| Other Victorian areas | $650,000 |
Both the purchase price and the lender’s assessed value must be within the cap. For separate land-and-build contracts, the combined land price and build cost must also fit within the cap.
Do not rely on a suburb’s description as “regional” or “Melbourne”. Check the exact suburb and postcode, then confirm with your Participating Lender.
Make the numbers tangible
What does a 5% deposit look like?
$500,000 lender-assessed Property Value
$25,000
5% deposit
$650,000 lender-assessed Property Value
$32,500
5% deposit
$950,000 lender-assessed Property Value
$47,500
5% deposit
Illustrations only, using 5% of the lender-assessed Property Value and assuming the purchase price equals that value. These are deposit amounts, not the total cash needed or a borrowing approval. The $950,000 example is above the cap for other Victorian areas.
Allow for conveyancing, inspections, moving costs, lender costs and any duty payable. If you have more savings, you may need to contribute more than the minimum. A valuation below the price can increase the cash you need.
Three different types of help
How does this differ from Victorian grants?
Federal 5% Deposit Scheme
A lender guarantee supporting eligible low-deposit loans, not a payment to you. Eligible borrowers may avoid Lenders Mortgage Insurance (LMI) under the Scheme, helping reduce upfront costs. Other purchase, lender and legal costs may still apply.
Victorian First Home Owner Grant
A separate $10,000 grant for eligible buyers buying or building a new Victorian home worth up to $750,000. An established home generally does not qualify.
Victorian stamp-duty relief
Eligible first home buyers may pay no duty on a home with a dutiable value up to $600,000, with a concession from $600,001 to $750,000.
Each program has its own eligibility, property and residence rules. Qualifying for the federal Scheme does not automatically qualify you for a Victorian grant or duty relief. Check each separately before relying on combined assistance.
Looking beyond Victoria?
Buying in NSW or another state
The 5% Deposit Scheme operates Australia-wide. The core federal rules remain the same, but property caps—and separate state grants and duty concessions—depend on where you buy.
NSW: the key numbers
Federal Scheme property caps
- $1,500,000 in Sydney and the Scheme’s designated regional centres.
- $800,000 in other NSW areas.
Designated regional centres include Central Coast, Coffs Harbour–Grafton, Illawarra, Mid North Coast, Richmond–Tweed, Newcastle and Lake Macquarie. Confirm the exact postcode with your lender.
Separate NSW assistance
Eligible first home buyers may receive a transfer-duty exemption on a new or existing home valued up to $800,000, or a concession above $800,000 and below $1 million.
The $10,000 First Home Owner (New Homes) Grant has different limits: up to $600,000 for an eligible new-home purchase, or up to $750,000 for combined land and building costs, including variations.
Eligibility and residence conditions apply. Established homes do not qualify for the new-home grant; vacant-land duty thresholds are different.
Other states: federal Scheme caps at a glance
| State | Capital city / designated regional centres | Other areas |
|---|---|---|
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
Queensland’s designated regional centres are the Gold Coast and Sunshine Coast. ACT: $1,000,000. Northern Territory: $750,000 in the capital city and $600,000 elsewhere. Jervis Bay Territory and Norfolk Island: $550,000. Christmas Island and Cocos (Keeling) Islands: $400,000.
Confirm any location using the official postcode tool →
State assistance is separate. Grant amounts, property limits and residence rules vary. Choose your state or territory in the official First Home Owner Grant directory to reach its revenue authority, then check local grant and duty assistance before relying on it.
Your next practical steps
From a question to a home-loan application
- Check the basics. Review your deposit, ownership history and intended location using the official tools.
- Work through affordability. Discuss your income, commitments and buying costs with John and a Participating Lender.
- Apply through a Participating Lender. The lender assesses and submits the Scheme application. You cannot apply directly to Housing Australia.
- Confirm the property and move in. Check the exact price cap, obtain final approvals and meet the Scheme’s ongoing residence requirements.
Common questions
Quick answers before you start
Is there an income limit?
The Scheme has no income cap. Your lender still needs to be satisfied that you can afford the repayments.
Can I buy an established home?
Yes, eligible new and existing homes can qualify. Options include houses, apartments, townhouses, house-and-land packages, off-the-plan homes and land with a building contract, subject to the rules and caps.
Can I use it for an investment property?
No. You must buy the home to live in, move in within the required timeframe and continue to occupy it while your loan is supported by the Scheme. For existing and off-the-plan homes, move in within six months of home loan settlement. For new builds, the six-month period runs from the occupancy certificate being issued; other construction deadlines also apply. Confirm the requirements with your Participating Lender.
Does the government own part of my home?
This is a loan guarantee, rather than a shared-equity contribution. You remain responsible for the loan and its costs. The guarantee protects the lender, not you, if the loan defaults.
What happens if my circumstances change?
If you stop living in the property or rent it out while the guarantee applies, the guarantee may no longer apply and your lender may require LMI or other costs. Speak with your Participating Lender before moving out, renting out, refinancing or changing ownership, including about any applicable exemption.
Is a 5% deposit all the money I need?
No. You need to budget for buying costs and a suitable cash buffer as well. Ask for a complete funds-to-settle estimate before committing to a purchase.
Check the source
Official information, in one place
This reference uses the Australian Government 5% Deposit Scheme Fact Sheet and Information Guide for First Home Buyers, both dated 1 July 2026. Key details were checked against the following official pages on 30 September 2026.
- Government fact sheets and information guides
- First-home-buyer eligibility and obligations
- Current property caps and postcode search
- Participating Lenders
- State Revenue Office: First Home Owner Grant
- State Revenue Office: first-home-buyer duty relief
General information from Briganti Money, not a government publication or a confirmation of eligibility. Rules and lender requirements can change. Confirm your circumstances with a Participating Lender and, for Victorian assistance, the State Revenue Office.
Put the guide into context
Let’s talk about your first home.
John can help you work through your deposit, buying costs and home-loan options before you take the next step.