More Queenslanders can now buy their first home with a deposit as low as 5% under the Australian Government’s 5% Deposit Scheme.
The expanded scheme (formerly known as the First Home Guarantee) removes income caps and increases property price thresholds, allowing more buyers to get into the housing market sooner.
What is the 5% Deposit Scheme?
The scheme allows eligible first home buyers to build or buy a home with a low deposit, removing a major barrier to home ownership. Buyers with a deposit of less than 20% usually need to pay Lenders Mortgage Insurance (LMI) which can add thousands to a home loan. Under the 5% Deposit Scheme, a government guarantee is provided to the lender, allowing them to offer loans of up to 95% of the property value.
There are separate streams for first home buyers (minimum 5% deposit) and single parents or guardians (minimum 2% deposit).
Broader eligibility and no income caps
From 1 October 2025, the 5% Deposit Scheme replaced the First Home Guarantee Scheme to support more Australians to buy their own home. Changes include:
- No place limits: all Australian first home buyers who have saved a 5% deposit can apply.
- No income caps: people with higher incomes can access the scheme.
- Higher property price caps: to help home buyers where property prices have increased.
- Simpler access in regional areas: Regional First Home Buyer Guarantee will be replaced by the 5% Deposit Scheme.
This means first-time buyers can enter the market with lower upfront costs, a 5% deposit and no lender's mortgage insurance costs.
5% Deposit Scheme eligibility criteria
Eligible Australian citizens or permanent residents who have a minimum deposit may be able to access the scheme. Applicants must meet all of the criteria, including:
- Be an Australian citizen or permanent resident aged 18 or older at the home loan date
- Be buying a home in Australia priced at or below the location price cap (see below)
- Be planning to live in the home as an owner-occupier (investment properties are not eligible)
- Apply for a principal and interest home loan of up to 30 years with a participating lender.
First home buyers – additional criteria
- Have saved at least a 5% deposit
- Be a first home buyer (or haven’t owned property in the past 10 years)
- Apply on your own or jointly with other family members, such as a sibling, parent, or adult child.
Single parents or guardians – additional criteria
- Have saved at least a 2% deposit
- Be a single parent or single legal guardian (with no spouse or de facto partner)
- Be the natural parent, adoptive parent, or legal guardian of one or more dependent children
- Apply on your own (no joint applications).
- Must not have any other property interest once your new home settles.
Single parents or guardians do not need to be first home buyers – prior property ownership does not restrict them from accessing the scheme.
Eligible property types for the 5% Deposit Scheme
With the scheme covering a range of property types, buyers can choose the type of home that suits their budget, needs and preferred location, including:
- A new or existing home such as a houses townhouse, apartment, duplex or unit
- A house and land package
- Off-the-Plan apartment or townhouse
- Land and build where land and construction contracts are separate.
Property price caps in Queensland
Property price caps set by location limit how much home buyers can spend while being supported by the 5% Deposit Scheme. Both the purchase price and total value must stay under the location price cap. For people building a new home on vacant land with separate contracts, the cap covers the total land price plus build costs.
QLD price caps:
- Capital city and regional centres (Gold & Sunshine Coasts): $1,000,000
- Other locations: $700,000
Buyers can check prospective locations using the postcode search tool on the first home buyers website.
How does the 5% deposit scheme work?
Applicants apply for an owner occupier home loan with a participating lender, with principal and interest repayments over a term of up to 30 years.
Buyers need meet borrower eligibility criteria and lending criteria which differ across lenders. Anyone eligible for the scheme who doesn’t meet lender requirements may not get a home loan so it’s a good idea to talk to a participating lender early.
Once the loan is pre-approved, buyers have 90 days to find a home and sign a contract of sale. Successful applicants must meet ongoing obligations, including being responsible for all costs and repayments and continuing to live in the property as an owner-occupier
For more information visit Australian Government 5% Deposit Scheme or the Housing Australia website.
Finding a participating lender
We've partnered with Loan Studio, Queensland-based construction loan experts, to guide you through financing, pre-approvals, and accessing grants like:
- 5% Deposit Scheme
- First Home Owner Grant (up to $30,000, price caps apply)
- Stamp duty exemptions
It's important to remember that each scheme has it's own eligibility criteria and approvals are subject to assessment by the relevant governing authority.
Build or buy with Plantation Homes using the 5% Deposit Scheme
Our Q Collection is designed to help aspiring home buyers get into a new home sooner, offering:
- Special intro pricing from $201,900 (including the $30K FHOG reduction for eligible first home buyers)
- Get going with $5K and start building in 12 weeks
- 7-star energy efficiency
- $6,460 worth of premium upgrades across your kitchen, appliances, ensuite and bathroom for FREE when you buy flooring from only $7,990
Visit a display location and speak to a new home consultant for available options.