The Albanese government will allow all first home buyers to purchase a property with just a five per cent deposit from October 1, 2025, bringing the policy forward from its original date of January 1, 2026.
Albanese government brings forward five per cent deposit scheme for first home buyers, despite concerns over impact on house prices The Albanese government will let first home buyers enter the market with a five per cent deposit from October 1, in a move that could push up house prices even further.
The Albanese government will allow all first home buyers to purchase a property with just a five per cent deposit from October 1, 2025, bringing the policy forward from its original date of January 1, 2026. Prime Minister Anthony Albanese and Housing Minister Clare O’Neil will announce the plan on Monday as part of efforts to help young people “own their home quicker”.Under the five per cent deposit scheme, 15 per cent of the property’s value would be guaranteed by the government. The plan has previously drawn criticism for potentially fuelling already sky-high property prices, while doing nothing to improve affordability. Treasury analysis suggests the impact could nudge house prices up by around half a per cent over the next six years. The Albanese government will allow all first home buyers to purchase a property with just a five per cent deposit from October 1, 2025, bringing the policy forward from its original date of January 1, 2026. The government has argued the measure will save home buyers between $15,000 and $41,000 as they will not have to pay lenders mortgage insurance. Treasury estimates that up to 70,000 first home buyers will be supported by the scheme in the first 12 months. Unlike previous iterations of the scheme, the expanded program will have no caps on the number of participants and no income limits. Under the policy, a buyer purchasing a home at the national median of $844,000 would need only $42,200 upfront. This could potentially save up to eight years of deposit saving time and about $34,000 in insurance costs.“We want to help young people and first home buyers achieve the dream of home ownership sooner,” he said. “Bringing the start date of our five per cent deposit scheme forward will do just that — getting more Australians into their own home quicker, while saving them money along the way.” Ms O’Neil claimed the policy was designed to “level the playing field” for younger Australians who have struggled to compete in the housing market. “It’s just not right that an entire generation of young Australians have been locked out — saving for decades while paying off someone else’s mortgage,” she said. “Five per cent deposits for all first home buyers will mean people can get into their own home sooner, rather than being trapped in the rental cycle.” The announcement follows Sunday’s decision to pause changes to the 2,000-page National Construction Code until mid-2029, except for safety or quality matters. The government says the freeze will reduce complexity and help speed up delivery of new housing, part of its broader $43 billion agenda to tackle the national housing crisis. The five per cent deposit scheme comes as Labor faces growing pressure over its 1.2 million housing target. The National Housing Accord, which began in July 2024, aims to deliver 1.2 million new homes by 2029 to improve housing availability and affordability.
Housing Minister Housing Crisis Department Of Housing Lenders Mortgage Insurance Anthony Albanese Albanese Government Lmi 5 Per Cent Deposit Scheme Clare O'neil Labor Accelerates 5 Per Cent Deposit Scheme To Hel
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