Nearly 1,500 properties bought using Australia’s first home buyers' 5% deposit scheme converted into investments
Summary
Australia’s government 5% deposit scheme for first-time home buyers allowed nearly 1,500 homes to be turned into investment properties. The program, which helps buyers borrow most of their home cost with a government guarantee, now also supports high earners after income limits were lifted in 2025.Key Facts
- The 5% deposit scheme started in 2020 and allows first home buyers to borrow 95% of a property value with a government guarantee.
- Nearly 1,500 homes bought through the scheme have been converted into investments rather than owner-occupied.
- Over 208,000 loan guarantees have been provided by the scheme since it began.
- In October 2025, income caps were removed, allowing people earning over $300,000 per year to participate.
- More than 5,600 home purchases were made monthly through the scheme after the changes, up from about 3,400 the year before.
- The government monitors properties and borrower activity to ensure homes remain owner-occupied while under the scheme.
- Banks work with buyers if their situation changes, but once buyers stop living in the home, the government guarantee no longer applies.
- The scheme aims to help first-time buyers but some high earners and investors are now benefiting from it.
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