The Albanese Labor Government is making it easier for Australians to buy their first home, with new data from Housing Australia showing the 5% Deposit Scheme has helped 102,000 first home buyers since it was expanded.
On 1 October 2025, Labor expanded the 5% Deposit Scheme to all first home buyers, removing income caps, uncapping the number of places and increasing property price limits.
One in two first home buyers nationally are now using a first home buyer scheme to get into the market‑ with more than 280,000 Australians supported through the 5% Deposit Scheme since Labor came to government in 2022.
Australians supported by state and territory since the expansion:
| State/Territory | Under Labor | In the last year |
|---|---|---|
| Victoria | 89,375 | 33,413 |
| New South Wales | 76,285 | 28,158 |
| Queensland | 61,675 | 20,125 |
| Western Australia | 31,828 | 11,207 |
| South Australia | 10,436 | 4,495 |
| ACT | 7,207 | 3,106 |
| Tasmania | 4,401 | 1,588 |
| Northern Territory | 2,076 | 502 |
| Total | 280,000+ | 102,594 |
Lenders mortgage insurance is an extra cost many home buyers who do not have a 20% deposit are charged by lenders.
The scheme backs eligible first home buyers to purchase with a deposit of as little as 5% of the total purchase price.
Based on median prices and assuming a 5% deposit, the scheme has saved Australians more than $2.5 billion in LMI under this government with $1.4 billion in the last year alone under the expanded scheme.
For a first home buyer purchasing the national median‑priced home with a 5% deposit, that is an estimated saving of around $23,700.
Saving for a deposit is one of the biggest barriers to home ownership with some purchasers saving up to 11 years for a deposit. The 5% Deposit Scheme means first home buyers can buy sooner and get out of the rent trap and into their own home.
The scheme is performing strongly, with 99% of borrowers ahead or on track with repayments‑ and since its launch only 13 claims have been paid. On average, most people move off the scheme in 2.5 years.
We know too many Australians feel housing is stacked against them, especially younger Australians with falling rates of home ownership.
This is why the Albanese Labor Government is levelling the playing field with our record of helping first home buyers through:
- Tax reforms to capital gains tax and negative gearing to help level the playing field for first home buyers.
- Our 100,000 Homes for First Home Buyers program, with the government working with states and territories to unlock new homes, including homes reserved exclusively for first home buyers.
- Rolling out the Help to Buy shared equity scheme, which is helping low‑ and middle‑income Australians achieve home ownership.
The Albanese Labor Government is the party of first home buyers, with a comprehensive $47 billion Homes for Australia plan to build more homes and help more Australians achieve home ownership, and we’ll keep on delivering on it.
Quotes attributable to Prime Minister Anthony Albanese
“This scheme is helping Australians, particularly young Australians, get their foot in the door and achieve the dream of home ownership.
“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.
“When it comes to housing challenges, we’re tackling it from every angle – making it easier for first home buyers, boosting supply and helping renters get a better deal.”
Quotes attributable to the Minister for Housing, Homelessness and Cities, Clare O’Neil
“Buying your first home is one of the biggest moments in anyone’s life, and this scheme is helping Australians get there sooner.
“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.
“We’ve got a $47 billion agenda to build more homes, to help renters get a better deal, and to get more Australians into home ownership.”