The Australian Government 5% Deposit Scheme (formally known as the First Home Guarantee) allows eligible first home buyers to purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance. The government guarantees the remaining portion of the standard 20% threshold, meaning lenders treat your application as if you had a full 20% deposit.
Since October 2025 the scheme has no income caps, no annual place limits, and applies to both new and established properties. It is available to all eligible Australian first home buyers regardless of how much they earn.
The key constraint is the property price cap. Every suburb in Australia has a maximum purchase price under the scheme, determined by whether it sits within a capital city or regional centre boundary. Use the calculator below to check the cap for any suburb in the country, then read the full guide to understand how the scheme works, what you need to qualify, and how to apply.
Find the maximum purchase price for the 5% deposit First Home Guarantee scheme for any suburb in Australia
First Home Guarantee — effective from 1 October 2025
| State / Territory | Capital City & Regional Centres | Other Areas | Notes |
|---|---|---|---|
| New South Wales | $1,500,000 | $800,000 | Regional centres: Illawarra, Newcastle & Lake Macquarie |
| Victoria | $950,000 | $650,000 | Regional centre: Geelong |
| Queensland ★ | $1,000,000 | $700,000 | Regional centres: Gold Coast & Sunshine Coast |
| Western Australia | $850,000 | $600,000 | Perth metro |
| South Australia | $900,000 | $500,000 | Adelaide metro |
| Tasmania | $700,000 | $550,000 | Hobart metro |
| ACT | $1,000,000 | All areas | |
| Northern Territory | $600,000 | From Jul 2026: Darwin $750k, other NT $600k | |
| Jervis Bay & Norfolk Island | $550,000 | All areas | |
| Christmas & Cocos Islands | $400,000 | All areas | |
Stanford Financial is an approved mortgage broker for the First Home Guarantee. We confirm your eligibility, identify which schemes you can combine, and manage the full application process — at no cost to you.
Book a free assessment →The Australian Government 5% Deposit Scheme is the official name for the First Home Guarantee, administered by Housing Australia. It was previously known as the First Home Loan Deposit Scheme (FHLDS) before being rebranded.
Under the scheme, Housing Australia issues a guarantee to your participating lender covering the loan amount between 80% and 95% of the property value. This guarantee substitutes for the Lenders Mortgage Insurance that lenders typically require when you borrow more than 80% of a property’s value. Because the risk to the lender is underwritten by the government rather than an insurer, no LMI premium is charged to you.
The guarantee is not a cash payment and does not reduce your loan amount. You are still borrowing 95% of the purchase price and your repayments are calculated on that full amount. The financial benefit is entirely the elimination of the LMI premium, which at a 5% deposit can range from approximately $15,000 on a $500,000 purchase to over $40,000 on a $1,000,000 purchase.
The scheme does not change your borrowing capacity, reduce your interest rate, or alter the lender’s credit assessment. You still need to qualify under the lender’s standard income, expense, and credit criteria. The guarantee removes the LMI cost but does not override responsible lending obligations.
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How the First Home Guarantee works
The government fills the gap between your 5% deposit and the 20% threshold — so lenders treat you as if you had 20%
The scheme underwent its most significant expansion since launch from 1 October 2025. The changes were:
These changes mean the scheme is now genuinely accessible to any Australian first home buyer who has saved a 5% deposit, without the eligibility filtering that previously excluded higher income earners or restricted places to a ballot-style process.
You cannot apply for the First Home Guarantee directly through Housing Australia. It must be applied for through an approved participating lender or their authorised representative, such as an accredited mortgage broker. Stanford Financial can apply on your behalf.
The property price cap is the maximum purchase price and lender valuation at which a property qualifies for the scheme. Caps vary by location based on whether your suburb is classified as a capital city, a designated regional centre, or another area under ABS statistical geography.
The following caps are effective from 1 October 2025:
| State / Territory | Capital City & Regional Centres | Other Areas | Regional Centres |
| NSW | $1,500,000 | $800,000 | Illawarra, Newcastle & Lake Macquarie |
| VIC | $950,000 | $650,000 | Geelong |
| QLD ★ | $1,000,000 | $700,000 | Gold Coast & Sunshine Coast |
| WA | $850,000 | $600,000 | Perth metro only |
| SA | $900,000 | $500,000 | Adelaide metro only |
| TAS | $700,000 | $550,000 | Hobart metro only |
| ACT | $1,000,000 | Same | All areas |
| NT | $600,000 | Same | Darwin $750k from Jul 2026 |
Regional centres receiving the higher capital city cap are: Illawarra and Newcastle and Lake Macquarie in NSW, Geelong in VIC, and Gold Coast and Sunshine Coast in QLD. All other areas outside capital cities and these regional centres receive the lower other areas rate regardless of city size.
For Queensland buyers, the $1,000,000 cap applies across all of greater Brisbane including Ipswich, Logan, Moreton Bay, and Redlands, as well as the Gold Coast and Sunshine Coast. The $700,000 other areas cap applies to Toowoomba, Cairns, Townsville, and all remaining regional Queensland.
Use the price cap calculator above to check the exact cap for any Queensland suburb or postcode. The tool covers all 18,500 plus Australian suburbs using ABS SA4 classification data, which is the same dataset Housing Australia uses to determine caps.
Both the purchase price you agree with the vendor and the lender’s independent valuation must sit within the cap. If the lender’s valuation comes in below your purchase price, the lower figure is used. If that lower figure still falls within the cap the guarantee can proceed. If it does not, you will need a larger deposit or an alternative structure. Your broker can advise on how to manage this risk before you sign a contract.
The financial benefit is the elimination of the LMI premium. LMI is calculated as a percentage of the loan amount and increases with the loan to value ratio. At a 5% deposit (95% LVR), the premium is at its highest point on the sliding scale.
Illustrative LMI savings at a 5% deposit, based on standard market rates:
Actual LMI premiums vary between lenders. Use our LMI calculator for a precise estimate at your specific purchase price and deposit amount.
There is also a compounding benefit that is easy to overlook. Without the scheme, many buyers would add the LMI premium to their loan rather than paying it upfront, meaning they would pay interest on the LMI amount over the entire loan term. Eliminating that premium reduces the starting loan balance and the total interest paid over the life of the loan.
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What the First Home Guarantee saves you — in real dollars
Upfront cash required with and without the scheme · three QLD purchase price examples · April 2026
Stacking with other QLD schemes: The First Home Guarantee can be combined with the FHOG ($30,000 for contracts before 30 June 2026) and the QLD stamp duty exemption on new homes. On a $700,000 new build, stacking all three schemes reduces your effective cash requirement to approximately $5,000 after the FHOG is applied at settlement.
Housing Australia administers three schemes under the Australian Government’s home ownership support program. The right one for you depends on your circumstances:
| Feature | First Home Guarantee | Family Home Guarantee | Help to Buy |
| Minimum deposit | 5% | 2% | 2% |
| Who can apply | First home buyers | Single parents / guardians | First and previous owners |
| LMI waived | Yes | Yes | Yes |
| Income caps | None (removed Oct 2025) | None (removed Oct 2025) | Singles $100k / Couples $160k |
| Place limits | Unlimited | Unlimited | Limited places |
| Govt equity stake | No | No | Up to 40% (new) / 30% (existing) |
| Property price cap | Varies by suburb | Varies by suburb | Varies by suburb |
| Available now | Yes | Yes | Yes (from Dec 2025) |
The First Home Guarantee is the primary scheme for most first home buyers. The Family Home Guarantee is specifically for eligible single parents and guardians and offers a 2% deposit option. Help to Buy is a shared equity scheme where the government takes an ownership stake in exchange for contributing up to 40% of the purchase price, which reduces mortgage size and repayments but means sharing capital gains.
A broker can confirm which scheme you are eligible for and which gives the best outcome for your specific situation. In some cases you may qualify for more than one and the decision between them is not straightforward.
The First Home Guarantee can be combined with most Queensland state government schemes, creating a powerful stacked position for eligible buyers. The most common combination for Queensland first home buyers purchasing a new property:
On a $700,000 new home purchase in Springfield or Ipswich, this combination means:
You cannot apply directly through Housing Australia. Applications are made through approved participating lenders or their authorised representatives, which includes accredited mortgage brokers. The process:
Stanford Financial has access to over 50 lenders including all approved First Home Guarantee participating lenders. The full list of participating lenders is also available at Housing Australia’s website. Using a broker rather than going directly to a lender allows you to compare rates and product features across multiple participating lenders before committing.
Yes. The Australian Government 5% Deposit Scheme is the marketing name used on firsthomebuyers.gov.au for the First Home Guarantee. It was previously called the First Home Loan Deposit Scheme (FHLDS). They are the same program administered by Housing Australia.
Yes. Income caps were removed from 1 October 2025. There is no longer any income threshold for the First Home Guarantee. You can earn any amount and still qualify, provided you meet the other eligibility criteria.
No. Annual place limits were removed from 1 October 2025. The scheme now has unlimited places. Every eligible applicant can access the guarantee without competing for a capped number of spots each financial year.
No. The property must be your principal place of residence. You must move in within 6 months of settlement and continue to occupy it while the guarantee is active. Investment properties are not eligible.
If you sell the property the guarantee ends at settlement. If you want to rent out the property or move out, you need to notify your lender. Depending on your remaining LVR at that point, the lender may require you to pay out the LMI that was previously waived. Your broker can explain the exit conditions specific to your lender’s product terms.
Yes. The First Home Guarantee and the Queensland FHOG can be used together on an eligible new home purchase. The guarantee waives LMI on your 5% deposit loan while the $30,000 FHOG reduces your loan balance at settlement. Both can be combined with the QLD stamp duty exemption on new homes.
The First Home Guarantee waives LMI and you retain 100% ownership of your property from day one. Help to Buy is a shared equity scheme where the Australian Government contributes up to 40% of the purchase price but retains that equity stake. You repay the government’s share when you sell or are able to buy it out. The First Home Guarantee leaves you with full ownership but requires you to have a 5% deposit saved. Help to Buy only requires a 2% deposit but involves an ongoing government co-ownership arrangement.
The calculator contains 18,500 Australian suburb and postcode combinations. If your suburb is not appearing, try entering just the postcode or a partial suburb name. If it genuinely is not in the dataset, contact Stanford Financial directly and we will confirm the applicable cap with Housing Australia.
Stanford Financial is an approved mortgage broker for the Australian Government 5% Deposit Scheme. We confirm your eligibility, identify which state and federal schemes you can combine, compare rates across all participating lenders, and handle the full application process at no cost to you.
Call 0483 980 002 or book your free assessment online. We typically respond within one business day.
