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A New 5% Deposit Scheme: Who Are the Real Winners?

Aug 28, 2025

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Will this policy truly help first-home buyers, or push property prices higher?

From 1 October 2025, all first-home buyers in Australia will be able to purchase with just a 5% deposit and without paying mortgage insurance. The scheme also removes income caps, meaning buyers at all income levels are eligible.

The Facts

Here’s what’s changing in Victoria from 1 October 2025:

No income caps: all first-home buyers in Victoria are eligible regardless of income.

Unlimited places: there are no longer limits on the number of applicants.

Higher property price caps: Capital city and regional centres cap rises from $800,000 to $950,000.

More Buyers, Same Supply

More buyers will now be in a position to purchase, but the number of homes available is not changing. This raises the question: will the surge in demand simply push prices higher?

Early Advantage, Future Challenges

In the short term, some first-home buyers may benefit from lower barriers to entry. But in the longer run, could rising prices put the dream of ownership even further out of reach?

A Temporary Fix or Real Solution?

At its heart, Australia’s affordability challenge is about supply. Can demand-focused measures like this really solve the problem, or do they risk adding more pressure to an already competitive market?

What Do You Think?

This change will certainly shape the market, but the question remains: will it make homes more accessible, or simply push prices higher?

What do you think the real outcome will be? We'd love to hear your thoughts. Jump on our Facebook page or leave a comment below.

Andrew Wright
Andrew Wright
Licensed Estate Agent
andrew@thecoast.com.au
0481 310 010