Past-year update / HOUSING POLICY / FIRST HOME BUYERS
The expanded 5% Deposit Scheme: what changed in October 2025?
The Australian Government expanded its first home buyer scheme on 1 October 2025, removing income caps and place limits and lifting property price caps. Eligibility and participating-lender rules still matter.
The expanded Australian Government 5% Deposit Scheme offers eligible first home buyers a path to buy with a deposit as low as 5% without Lenders Mortgage Insurance. The expansion removed income caps and place limits, but other eligibility rules and lender credit assessment still apply.
What changed?
Housing Australia announced the expansion from 1 October 2025. The scheme has unlimited places, no income caps and higher property price caps than before. It also includes a stream for eligible single parents or legal guardians with a deposit as low as 2%.
A government guarantee supports part of an eligible home loan. It is not a cash grant to the buyer and does not remove the obligation to repay the mortgage.
Can I use any lender or property?
No. Applications go through participating lenders, and the scheme has eligibility and property rules. Price caps depend on the location. The official scheme site maintains the current criteria and participating-lender information.
This article does not imply that So Money or every So Money product participates in the scheme. That must be confirmed before any application is discussed.
What should buyers compare?
A smaller deposit may help someone buy sooner, but it can also mean a larger loan. Compare repayments, total borrowing costs, property expenses and a realistic cash buffer. A participating lender must still assess the application under its own lending requirements.
- Check the current property price cap for the location.
- Verify lender participation and your eligibility on the official scheme site.
- Compare the whole mortgage, not only the deposit requirement.
Official sources
- Housing Australia — expansion announcement, 1 October 2025 ↗
- Australian Government — current 5% Deposit Scheme details ↗
This article explains a past announcement and is not personal credit, legal or financial advice. Check current scheme criteria, price caps, lender participation and So Money availability before approval.