A New Opportunity for First Home Buyers: The 5% Deposit Scheme Explained

A new chapter begins for first home buyers across Australia. The Australian Government’s expanded 5% Deposit Scheme aims to make home ownership more accessible, helping more Australians enter the property market sooner.

For those considering building their first home in a thoughtfully planned Cedar Woods community, this initiative presents a valuable opportunity to take the next step toward home ownership.

What is the 5% Deposit Scheme?

Under the expanded scheme, eligible buyers can purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). Typically, lenders require a 20% deposit to avoid this additional insurance cost, which can add significantly to the overall loan.

LMI can range between 1% and 5% of the loan amount, depending on the lender and property value. With the median Australian home price now around $844,000, this could equate to up to $42,200 in additional costs.

By removing this expense, the scheme helps reduce upfront financial barriers and enables buyers to enter the market sooner, turning rent payments into equity while building long-term financial stability.

As Prime Minister Anthony Albanese noted:

“We want to help young people and first home buyers achieve the dream of home ownership sooner. Getting more Australians into their own home quicker, while saving them money along the way.”

What’s Changing, and Why It Matters

The updated scheme introduces several key changes designed to support more buyers:

• 5% deposit with no Lenders Mortgage Insurance
• No income caps or application limits
• Higher property price caps, up to $1,000,000 for Brisbane and regional centres
• Expanded lender participation, including regional and customer-owned banks
• Be at least 18 years old
• Be an Australian citizen or permanent resident
• Be a first home buyer, or not have owned property in the past 10 years
• Live in the home as their primary residence
• Have at least a 5% deposit saved
• Purchase a new or existing residential property, including house and land packages, townhouses or apartments

In practical terms, a buyer in Brisbane, Moreton Bay or Logan could purchase a $1 million home with a $50,000 deposit, potentially saving years of additional deposit saving and avoiding tens of thousands of dollars in mortgage insurance.

Eligibility Criteria

To qualify for the scheme, applicants generally must:

For full eligibility details and application information, visit firsthomebuyers.gov.au.

Finding the Right Community for Your First Home

Government initiatives such as the 5% Deposit Scheme can make entering the market more achievable, but choosing the right location is equally important.

Cedar Woods offers a range of masterplanned communities in Queensland designed to support growing families and first home buyers alike.

Sage Burpengary is a thoughtfully designed community in the thriving Moreton Bay Region, offering a balanced lifestyle surrounded by natural green space and everyday convenience. Residents enjoy close proximity to retail centres, schools, childcare and transport links, with Brisbane CBD approximately 40 minutes away and the Sunshine Coast within easy reach.

The masterplan incorporates over 30% green space, including a 7-hectare environmental corridor and community parkland, creating a setting where residents can connect with nature while remaining close to essential amenities.

Further south, Flourish South Maclean provides a boutique land community nestled amongst natural bushland, offering space to grow within a connected yet peaceful setting. Residents benefit from convenient access to Logan, Brisbane and the Gold Coast corridors, while still enjoying the tranquillity of the surrounding landscape.

For buyers seeking a home close to the city, Ellendale in Upper Kedron offers elevated homesites surrounded by natural landscapes while still being just 12 kilometres from Brisbane CBD. The community sits alongside the South D’Aguilar National Park and incorporates extensive nature corridors and parklands, creating a setting where residents can enjoy both convenience and a strong connection to the natural environment.

For those considering a low-maintenance option closer to the inner city, Greville Wooloowin offers a boutique urban village featuring apartments and townhomes just five kilometres from Brisbane CBD. With nearby train stations, bikeways, parks and local cafés within walking distance, Greville combines urban convenience with the character and charm of one of Brisbane’s established suburbs.

Taking the First Step

For many Australians, government initiatives like the expanded 5% Deposit Scheme can make the path to home ownership more achievable.

Whether you’re searching for a connected land community, a nature-inspired neighbourhood, or a well-located urban residence, Cedar Woods offers a range of communities designed to support a variety of lifestyles.

If you’re ready to explore your options, discover more about Sage Burpengary, Flourish South Maclean, Ellendale Upper Kedron or Greville Wooloowin, and find the community that’s right for your first home.