100,000 first home buyers in a year: what the 5% Deposit Scheme milestone means for you

One year after the 5% Deposit Scheme opened to all first home buyers, new figures reported this week show that more than 100,000 buyers have used it. For anyone still saving, that is a useful signal: the scheme is now a mainstream way into the market. It also lands at a moment when interest rates are at a 15-year high, so it is worth understanding what the milestone does and does not tell you.

What the first-year numbers show

Media reports on the anniversary put national use at about 102,594 first home buyers since the scheme was expanded on 1 October 2025, with roughly 28,000 of them in New South Wales. These are figures from news coverage of the anniversary, so treat them as approximate and check Housing Australia for official updates.

The expansion changed the scheme in three main ways, all described on the official scheme pages:

• No income caps: eligibility is no longer limited by how much you earn.
• No cap on places: the annual place limit was removed.
• Higher price caps: for example, the NSW capital city and designated regional centres cap is now $1,500,000, and the Victorian equivalent is $950,000.

How the scheme works

The scheme lets eligible buyers purchase with a deposit of as little as 5% (2% for single parents and legal guardians) without paying Lenders Mortgage Insurance. Housing Australia guarantees part of the loan, and your lender still assesses your borrowing capacity as usual. Price caps differ by state and by whether the property is in a capital city or designated regional centre, or elsewhere.

• Capital city and regional centre caps: NSW $1,500,000, QLD $1,000,000, WA $850,000.
• Rest of state caps: NSW $800,000, QLD $700,000, WA $600,000.

Why a bigger deposit buffer still matters

A small deposit gets you in sooner, but it also means a larger loan. With the cash rate at 4.60% after four rises this year, repayments on a bigger loan are more sensitive to further moves. Recent analysis has also pointed out that thin equity is more common where prices have softened, which only becomes a practical issue if you need to sell or refinance in the short term. Many buyers who plan to stay put will not be affected, but it is a good reason to test your numbers with some room to spare.

What this means for first home buyers

The milestone shows the scheme is widely used, not that it suits every situation. Based on your own inputs, these are points you may want to weigh up:

• Check the current price cap for your state and area against the properties you are considering.
• Compare how repayments look at today's rates and at a higher rate, not just the rate on offer now.
• Talk to a mortgage broker or your lender about eligibility. The scheme administrators make the final determination.

Run the numbers

These tools can help you explore the scenarios above:

• Scheme Comparison Tool - see how the 5% Deposit Scheme compares with other options
• Interest Rate Shock Tester - test repayments if rates rise again
• Borrowing Power Calculator - get an estimate of what a lender may assess
• LMI Calculator - see the insurance cost the scheme can help you avoid