What is the 5% Deposit Scheme?
The 5% Deposit Scheme, previously known as First Home Guarantee (FHBG), is an Australian Federal Government initiative that allows eligible first home buyers to purchase or build a home with as little as 5% deposit, without needing to pay costly Lenders Mortgage Insurance (LMI).
You don’t need to wait years to save a 20% deposit (which keeps getting further out of reach as property prices increase, this could get you into your first home much sooner.
Quick Facts:
- Deposit required: 5%
- No LMI as the government covers the shortfall (the remaining 15%)
- Available for new home builds in Perth, Melbourne and across Queensland
- Property price caps apply (see below)
- Income limits no longer apply
- You can also take advantage of other government incentives while using this scheme (if eligible)
We’ll partner with you to see if the 5% Deposit Scheme is the right fit for you. After all, we believe that the perfect place is possible for everyone – and that includes finding the perfect financing solution.
| State | Capital city & regional centres | Other areas |
|---|---|---|
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
*Regional centres are (1) in New South Wales – Illawarra, Newcastle and Lake Macquarie, (2) in Victoria – Geelong, and (3) in Queensland – Gold Coast and Sunshine Coast.
See if you qualify for the 5% Deposit Scheme.
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How It Works
Free Eligibility Check
We’ll confirm whether you qualify for the 5% Deposit Scheme, grants, and other incentives, including our exclusive $25k Deposit Boost. There’s a bit to consider, but we do this every day – so we know how to get you the best deal.
Tailored Finance Plan
Our in-house finance team compares lenders and solutions to find your best fit based on your situation and goals. They also work with you through the paperwork and any questions you have – we know this part can feel daunting.
Land + Builder Match
As Perth’s leading building broker, we’ll do the work for you to find the right block of land and match you with the builder who fits your style, budget, and timeline (and one that we trust!)
Lock in today’s prices
With the widening of this scheme and general market conditions, land, house and build prices are expected to keep climbing. By locking in a package today you can secure today’s prices. This is because our builders have price hold guarantees so you are covered up front.
FAQs about the 5% Deposit Scheme
The scheme, previously known as First Home Guarantee, has been expanded on earlier than initially planned, launched on 1 October 2025 instead of January 2026. Here’s what’s new:
- No more place limits
Previously capped at around 50,000 spots per year, the scheme will now have unlimited places, so any eligible first home buyer with a 5% deposit can apply. - No income caps
Income thresholds (previously $125,000 for individuals and $200,000 for couples) have been removed completely—high-income earners can now also qualify. - Significantly higher property price caps
The maximum property values eligible under the scheme are rising across all states to better reflect market conditions. Highlights include:
WA (Perth metro): from $600,000 → $850,000
Other states also see major increases (e.g., Sydney to $1.5M; Brisbane to $1M)
Yes! Locale helps you stack the 5% Deposit Scheme (previously known as the First Home Guarantee (FHBG), stamp duty concessions, and even our Deposit Boost with the scheme.
Eligibility criteria apply.
Don’t wait years to save a 20% deposit.
With the 5% Deposit Scheme and Locale team in your corner, you can buy your first home.
You don’t need to wait to make your goals happen!
We’ve Got You
Unbiased advice, tailored to you
We prioritise your best interests (not a big corporation’s). Unlike a traditional salesperson with a one-builder focus, we are unbiased advocates who help you find the best builder, block and home design to suit your needs.
Get insider knowledge
As partners of land agents and industry insiders, we offer you exclusive access to more options and critical insights into builder reputations, current build times, and practices. If a builder doesn’t meet our high standards, we won’t recommend them.
The most choice in one place
Access a huge range of designs from our panel of trusted builders, all in one place.
We are sure that we’ll find the perfect place for you – one that ticks all the boxes and fits your budget.
A partner through it all
We’ll work to secure competitive finance that suits you, secure your block, and select the right builder who can make your perfect place happen.
We’re by your side – if you want advice in your pre-start or want clarification during construction, we are here.
Backed by experience
As experts in the Perth property and building industry, we stay ahead of the latest regulations, trends, and materials—ensuring your home is built to last.
It means we know what hidden costs to look out for; what to include and what to leave out; and who to trust with your new home.
What our clients say
Dealing with Locale Homes has been an absolute pleasure. They found a block and home. Every step of the way was smooth and easy. Locale Homes did all the work with genuine care for the client’s wants. I would highly recommend anyone to deal with Locale Homes.
It has been such a pleasure working with Tayla. She has made the process so simple and exciting. We bounced many ideas back and forth and changed our plans a bunch of times which she was more than happy to ensure we had everything exactly how we wanted. Thanks for all the help so far!
Adam has made the process of buying and building so achievable, always a message or email away he has gone above and beyond to guide me through the process of building as a first home owner. Once a dream I didn’t think would be possible for me, Adam has been there from day one to explain processes, find suitable locations and design floor plans to suit my every want and need. I would recommend Adam and the Locale Team every time!
The team has been super helpful. This is my first time buying and Oumi has gone above and beyond to answer any and every question I have and assist me. They’re a great team and I’m super thankful to have them helping me with this journey!
Locale homes has been awesome to deal with and Ivano has been an absolute star, from explaining every little detail to dealing with builder issues as they arise. If I were to build again I would definitely be giving Ivano a call.
We came to Locale Homes after being rejected by about a dozen other builders and brokers. Nathan has been really helpful throughout the whole process. He is very professional, takes all the time we need to explain everything, and has the ability to think outside the box – which seems to be something a lot of people in his industry lacks! Owning a home, let alone building one, seemed like a distant dream, but Nathan and the team at Locale Homes has gone to great lengths to make it all possible.
