Each week, Helen scrolls through real estate listings and spends most Saturday mornings and afternoons going to open homes. For the past six months, she’s been on the hunt for her ideal first home – a two-bedroom unit in Melbourne’s north, close to family, friends and her workplace.
She’s seen a few properties with potential but has been outbid by buyers with deeper pockets. But the 27-year-old school teacher is optimistic that in the next six months, she’ll hold the keys to her first property.
“I’ve been saving consistently since I began working and I’ve got a reasonable deposit, although some of that will be swallowed by the upfront costs that come with buying a property,” says Helen.
“Property prices keep rising in Melbourne and I sometimes feel I’m playing catch-up – I save more but prices go up and cancel out any progress. That’s why the 5% Deposit Scheme helps. It’s helping people like me take that first step on the property ladder sooner. So I can look for a home now, rather than in a couple of years’ time.”
How the 5% Deposit Scheme works
In October 2025, thousands of first home buyers moved a step closer to home ownership with the expansion of the Australian Government 5% Deposit Scheme. Since the scheme launched in 2020, more than 248,000 people have taken it up.¹
Under the expanded scheme, there’s no income cap, so earnings don’t restrict access, and you can use it to buy a home or unit – an established property or a new build – as long as you can contribute a minimum 5 per cent deposit. Depending on the eligibility criteria and your financial situation, you may be required to contribute more than a 5 per cent deposit.
“The scheme cuts back the time you’d have to spend saving a bigger deposit – saving for a 5 per cent deposit versus a 20 per cent deposit can be a difference of years. So, it helps first home buyers get into the market sooner,” explains Tomas Khoury, CommBank home lending executive.
“Property prices in parts of Australia are going up and up, and while you’re sitting on the sidelines and saving, the goal posts keep changing.”
There are no waitlists and buyers using the scheme don’t have to pay lenders mortgage insurance (LMI). Buyers also have peace of mind as the Government provides a guarantee to authorised lenders.
“The Australian Government 5% Deposit Scheme is a great help, but you still need to do your homework,” says Khoury. “While you put down a smaller deposit, there’s a bigger loan to be repaid and there will be some upfront costs, too. Talk to an expert to make sure you’re comfortable with the numbers.”