| FRD Explains |
First
Home
| FRD Explains |
5% Deposit
Scheme
HERE'S HOW IT WORKS
What is the Australian Government 5% Deposit Scheme?
Buying your first home can feel scary. Like… “Do I need a giant deposit?”
“What if I mess this up?”
“Isn’t property investing risky?”
Take a breath. This scheme exists to make your first home feel possible, not terrifying.
The Australian Government 5% Deposit Scheme helps first-time buyers get into a home without needing a huge deposit. If you’ve saved as little as 5% of the purchase price (or just 2% if you’re a single parent or legal guardian), the Government can step in and help you buy sooner.
Normally, people who don’t have a big deposit get hit with extra costs like Lenders Mortgage Insurance (LMI). This Scheme removes that. Less money upfront. Less pressure. More breathing room.
From 1 October 2025, the rules became even simpler:
There are no income limits, no long waitlists, and no LMI. Translation? More people can apply, and you don’t have to jump through hoops wondering if you qualify.
You can use the Scheme to buy:
A small apartment
A family home
Or even land to build on
And it’s available right across Australia, so you’re not limited to one type of lifestyle or location.
Is it too good to be true?
It does sound like a scheme that is bound to have some hooks to it.
Since 2020, more than 248,000 Australians have already used this Scheme to buy their first home. Regular people. First-timers. Folks who once thought home ownership was out of reach.
If you’ve been sitting on the sidelines because property feels overwhelming or risky, this is the Government saying: “You don’t have to do this alone.”
One more thing – you might have heard this called the Home Guarantee Scheme before. Same support, new name.
You don’t need to be a property expert. You don’t need to have it all figured out. You just need the right support and a first step that doesn’t feel terrifying.
FRD builds affordable homes that are within reach of more hard-working Australian’s. That said, only a small proportion of our house and land packages will qualify for the 5% Deposit Scheme.
If you’re in the market for a solid investment with everything you need and no silly bells and whistles that drive the price up… take a look at what we build.