5% Deposit Scheme helps 102,594 first home buyers in a year, 20,125 in Queensland

What's happening

The Federal Government says its expanded 5% Deposit Scheme has helped 102,594 first home buyers purchase a home in the 12 months since the scheme was opened to all first home buyers on 1 October 2025. The figures, drawn from Housing Australia data, were released in a joint statement by Prime Minister Anthony Albanese and Housing Minister Clare O'Neil on 1 October 2026.

Queensland accounted for 20,125 of those purchases, behind only Victoria and New South Wales. Since the government took office in 2022, more than 280,000 Australians have used the scheme, including 61,675 in Queensland.

The key details

The scheme lets eligible first home buyers purchase with a deposit of as little as 5% without paying lenders mortgage insurance (LMI), with the government guaranteeing part of the loan. The October 2025 expansion removed income caps and the cap on places, and lifted the property price limits.

• Victoria: 33,413 buyers in the last year; New South Wales: 28,158; Queensland: 20,125
• Total LMI savings since 2022: more than $2.5 billion, including $1.4 billion in the past year
• Estimated saving for a buyer of a national median-priced home: about $23,700
• About one in two first home buyers nationally now use a government first home buyer scheme
• Only 13 claims have been paid since the scheme began, and most participants exit after about 2.5 years

Timeline and next steps

The scheme continues to operate without a cap on places. The government also pointed to its 100,000 Homes for First Home Buyers program, the Help to Buy shared equity scheme and its broader $47 billion Homes for Australia plan as further support for buyers. The release did not announce new changes to eligibility or price limits.

Buyers should check current price caps for their area and the list of participating lenders with Housing Australia before applying.

What it means for Gold Coast property owners and developers

With more than 20,000 Queenslanders using the scheme in a year, first home buyers remain a steady source of demand for entry-level houses, townhouses and apartments across South East Queensland. For Gold Coast sellers of homes within the price limits, that broadens the pool of buyers who can act without a 20% deposit.

Lower deposits also mean larger loans, so buyers still need to borrow within their means as interest rates have risen this year. Developers marketing new stock to first home buyers should confirm which product suits the scheme's price caps. This is general information, not financial advice.

Frequently asked questions

How many Queenslanders used the 5% Deposit Scheme last year?

According to the government, 20,125 Queensland first home buyers used the scheme in the year since its expansion, and 61,675 since 2022.

Do I need to pay lenders mortgage insurance under the scheme?

No. Eligible buyers can purchase with a 5% deposit without paying LMI, which the government estimates saves about $23,700 on a median-priced home.

Are there still income limits?

No. The October 2025 expansion removed the income caps and the cap on the number of places, and raised the property price limits.

Source: Treasury Ministers – joint media release (Prime Minister and Minister for Housing), published 1 October 2026. This article is an independent summary and commentary by GC Prestige based on the original report — read the source for full details.