The Australian Government 5% Deposit Scheme lets eligible first home buyers buy with a 5% deposit and pay no lenders mortgage insurance (LMI). In Queensland the price cap is $1,000,000 in the capital city and regional centres, and $700,000 in the rest of the state. Single parents and legal guardians can buy with a 2% deposit.
Since the scheme was expanded on 1 October 2025, there are no income caps, no limit on places and no waiting list.
How the scheme works
Normally, a buyer with less than a 20% deposit pays LMI, which protects the lender. Under the scheme, the government guarantees part of your loan to a participating lender instead. That lets the lender lend up to 95% of the home's value (98% for single parents and guardians) without charging LMI.
You still need to meet the lender's normal credit and loan approval rules. Being eligible for the scheme doesn't guarantee a loan.
Queensland price caps
| Where | Price cap |
|---|---|
| Capital city and regional centres (Gold Coast, Sunshine Coast) | $1,000,000 |
| Rest of Queensland | $700,000 |
Two details catch people out:
- Both the purchase price and the lender's valuation must be at or below the cap.
- On split contracts (land plus a building contract), the land price plus the build cost must come in under the cap together.
The cap depends on where the home is. Before you sign, check the suburb in the government's price caps tool at firsthomebuyers.gov.au.
Who is eligible?
According to the government's fact sheet, all applicants must:
- be an Australian citizen or permanent resident, aged 18 or over
- buy a home in Australia priced at or below the location's cap
- live in it as an owner-occupier (investment properties aren't eligible)
- take an owner-occupier principal and interest loan from a participating lender, for up to 30 years, plus up to 3 years to build a new home
First home buyers also need a deposit of at least 5%. You must be a first home buyer, or not have owned a home or land in Australia in the last 10 years, and you can apply alone or with one other person, such as a partner, friend or family member.
Single parents and legal guardians need a deposit of at least 2%, must apply alone, and can't own another home or property interest once the new home settles.
Which homes qualify?
New and existing houses, townhouses and apartments all qualify, and so do house and land packages, off-the-plan purchases and vacant land with a building contract. For new homes, the up to 3 extra years on the loan term allows for construction.
How to apply
- Check your eligibility with the online tool at firsthomebuyers.gov.au.
- Talk to a participating lender. They assess you and lodge the application for you.
- Once you're approved, find your home, check its price cap, buy and move in.
A smaller deposit means a bigger loan
A 5% deposit gets you in sooner, but you borrow more and pay interest on more. The government's information guide covers the risks of borrowing with a low deposit. Read it and ask your lender to show your repayments before you commit.
Use it with Queensland's first home help
If you're buying new, the scheme can sit alongside the $30,000 First Home Owner Grant (for new homes under $750,000) and the nil transfer duty on new homes and vacant land. You can filter our listings by price to see what's under the cap, or browse the Brisbane South and Logan and Ipswich areas.
Common questions
What is the 5% Deposit Scheme price cap in Queensland?
$1,000,000 in the capital city and regional centres (the Gold Coast and Sunshine Coast), and $700,000 in the rest of Queensland. Check the exact cap for a suburb with the Australian Government's price caps tool.
Is there an income limit for the 5% Deposit Scheme?
No. The expanded scheme has no income caps, no limit on places and no waiting list.
Can investors use the 5% Deposit Scheme?
No. You must live in the home as an owner-occupier and take a principal and interest owner-occupier loan from a participating lender.
This article is general information only, current at 30/10/2026. It isn't financial, tax or legal advice. Rules and amounts change, so check the official sources below and speak to a licensed professional about your situation.
