First Home Guarantee Vic

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Victorian Guarantee

First Home Guarantee (5% Deposit Scheme)

A federal scheme that lets eligible first-home buyers in Melbourne and regional Victoria purchase with as little as a 5% deposit while the government guarantees part of the loan, so you avoid Lenders Mortgage Insurance.

Read the scheme details on firsthomebuyers.gov.au
George Giannakakis

By George Giannakakis · B.Arch.Studies · M.Arch (UniSA) · RLA300580

Last reviewed: · How we research

What is the First Home Guarantee (5% Deposit Scheme)?

Not cash and not a loan - a government guarantee. Administered by Housing Australia and accessed through participating lenders, it guarantees up to 15% of the property value so a 5% deposit is enough to avoid Lenders Mortgage Insurance (LMI). Since 1 October 2025 the scheme (now also called the Australian Government 5% Deposit Scheme) has no income caps, no annual place limits, and higher property price caps.

Who it is for

  • •First-home buyers, or people who have not owned property in Australia in the last 10 years.
  • •Australian citizens or permanent residents aged 18 or over, buying as an owner-occupier.
  • •Buyers with a deposit of at least 5% (plus costs) who meet a participating lender's normal lending criteria.
  • •In Victoria the property price cap is $950,000 for Melbourne and regional centres, and $650,000 for the rest of the state (caps effective 1 October 2025).

Who it is not for

  • •Investment properties - the home must be owner-occupied.
  • •Purchases above the Victorian property price cap for your location.
  • •Direct applications - you must apply through a participating lender, not Housing Australia directly.

How to know more

You apply through a participating lender, who checks your eligibility and reserves a place. Housing Australia publishes the current price caps and a postcode tool to confirm a property qualifies. A broker familiar with the scheme can line it up with your finance.

Authoritative sources (last researched 2026-06-25)

BuildPilot is a curator, not a financial adviser. Amounts and thresholds change each financial year (typically 1 July). Always confirm current figures with the State Revenue Office and your conveyancer before making a decision.

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