If you spent the past few years assuming you needed a 20 per cent deposit to buy your first home, or that a government scheme like this would never apply to someone earning your income, it is worth taking another look. Since October 2025, the federal government’s First Home Guarantee, now officially called the Australian Government 5% Deposit Scheme, has changed substantially. The income caps that used to exclude a large share of buyers are gone, the annual limit on places has been removed entirely, and the property price caps have been lifted to reflect what homes actually cost in 2026.

For Brisbane buyers specifically, this is a significant shift. Many people who ruled themselves out under the old rules, whether because of their income, their suburb of choice, or simply not realising the scheme had changed, are now eligible without knowing it.

The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase a home with as little as a 5% deposit, while the government guarantees the gap to the lender, meaning Lenders Mortgage Insurance is not payable. On a $700,000 Brisbane property, avoiding LMI altogether can save a buyer somewhere in the order of $20,000 to $30,000 depending on their lender and deposit size, money that would otherwise need to be paid upfront or added to the loan.

From 1 October 2025, the scheme removed its previous income caps entirely, meaning eligibility is no longer assessed against your taxable income at all. The old annual limit of 35,000 places has also been scrapped, so the scheme is now genuinely available to every eligible first home buyer rather than a capped number of applicants each year. Property price caps were lifted at the same time, with Brisbane, the Gold Coast and the Sunshine Coast now sitting at a $1,000,000 cap, and the rest of Queensland at $700,000.

What catches many buyers out is not the scheme itself but the assumption that they will not qualify, often based on outdated information from before the October 2025 changes. The other detail worth understanding upfront is that not every lender participates in the scheme, and those that do can assess applications quite differently from one another, which is exactly where a broker who knows the participating panel well becomes genuinely useful.

What Changed in October 2025

Before October 2025, the scheme excluded singles earning more than $125,000 and couples earning a combined $200,000, which ruled out a significant share of buyers in professions with strong incomes but high property prices to contend with. That income test has been removed completely. Your income is no longer assessed for eligibility under the scheme at all, although your lender will still assess your income as part of the usual home loan approval process, since the scheme guarantees the deposit gap, not your ability to service the loan.

The previous cap of 35,000 places per year has also been abolished. In practical terms, this means the scheme is no longer a race against a limited yearly quota, and eligible buyers do not need to worry about places running out partway through the financial year, as had happened in previous years under the old rules.

Property price caps were lifted substantially at the same time, to better reflect actual property values in each region. For Brisbane, the Gold Coast, the Sunshine Coast and Beaudesert, the cap now sits at $1,000,000. For the rest of Queensland, the cap is $700,000. These caps apply to the purchase price and the lender’s assessed value of the property, so it is worth confirming a property sits comfortably under the relevant cap before signing a contract.

What You Still Need to Qualify

Removing the income test does not mean the scheme has no eligibility requirements at all. You generally need to be an Australian citizen or permanent resident, be a genuine first home buyer who has not previously owned property in Australia, intend to live in the property as your home rather than as an investment, and have at least a 5% deposit made up of genuine savings or an accepted equivalent. Most lenders will also want to see some history behind that deposit, rather than it appearing as a lump sum with no explanation.

You will also still need to meet your chosen lender’s usual serviceability requirements, since the scheme addresses the deposit and LMI side of your application, not your ability to comfortably repay the loan. This is an important distinction, because being eligible for the scheme and being approved for the loan amount you want are two separate things, and it pays to understand your realistic borrowing capacity before you start house hunting in earnest.

What This Could Save You

The most direct saving from the scheme is avoiding Lenders Mortgage Insurance entirely. On a $700,000 property purchased with a 5% deposit, LMI would typically run to somewhere between $20,000 and $30,000 if paid without the scheme’s guarantee, depending on the lender and the specific loan structure. The scheme does not pay this cost on your behalf, it simply removes the need for it altogether, since the government’s guarantee to the lender stands in for the insurance that would normally be required at a lower deposit level.

Beyond the scheme itself, Queensland buyers purchasing a new home may also be eligible for the Queensland First Home Owner Grant, due to be set at $15,000 for eligible contracts from 1 July 2026, alongside a full stamp duty exemption on new homes with no price cap, and a partial or full transfer duty concession on established homes valued under $800,000. These state based supports can be combined with the federal deposit scheme where eligibility criteria for each are met, meaningfully reducing the total upfront cost of buying your first home.

Why the Lender You Choose Still Matters

Not every lender participates in the scheme, and you cannot apply for it directly through the government. Applications go through a participating lender or a broker with access to the participating panel. This matters because lenders that do participate can still differ substantially in how they assess certain borrower circumstances, including casual employment, HECS or HELP debt, self employed income, or a recent change in job.

Two lenders can both technically offer the scheme while taking quite different views on the same application, and choosing the wrong one for your specific circumstances can mean a slower process or, in some cases, an avoidable decline. This is precisely where working with a broker who understands which lender suits which borrower profile can make an enormous difference, rather than simply walking into the first bank branch you come across.

A great deal has changed about who can access the 5% Deposit Scheme since October 2025, and it is worth revisiting your assumptions if you previously ruled yourself out, particularly on income grounds. The combination of no income test, no place limits, and higher property price caps means the scheme is now available to a much wider range of Brisbane first home buyers than it was even a year ago.

If you are not sure where you stand, or you want to understand what you could realistically buy and what support you would qualify for, it is worth having a proper conversation before you start looking at properties. Get in touch with Adam at PierPoint Lending for a clear, no obligation chat about your first home buying options.

Frequently Asked Questions

Is there still an income limit to qualify for the 5% Deposit Scheme?

No. From 1 October 2025, the income caps that previously applied to the scheme, which excluded singles earning more than $125,000 and couples earning a combined $200,000, were removed entirely. Your income is no longer assessed for scheme eligibility, although your lender will still assess your income as part of the standard home loan approval process.

What is the property price cap for Brisbane under the scheme?

The price cap for Brisbane, the Gold Coast, the Sunshine Coast and Beaudesert is currently $1,000,000. For the rest of Queensland, the cap is $700,000. The cap applies to the purchase price and the lender’s assessed value of the property, so it is worth confirming a property sits comfortably under the relevant cap before signing a contract.

How much could the scheme actually save me?

The main saving is avoiding Lenders Mortgage Insurance. On a $700,000 property purchased with a 5% deposit, LMI would typically cost somewhere between $20,000 and $30,000 without the scheme, depending on the lender and loan structure. The scheme removes the need for this cost entirely, rather than paying it on your behalf, since the government’s guarantee to the lender stands in for it.

Can I use the 5% Deposit Scheme alongside other first home buyer support in Queensland?

Yes, in many cases. Queensland buyers purchasing a new home may also be eligible for the Queensland First Home Owner Grant, which will be $15,000 from 1 July 2026, along with a stamp duty exemption on new homes or a concession on eligible established homes under $800,000. These supports can generally be combined with the federal deposit scheme where you meet the eligibility criteria for each, which can meaningfully reduce your total upfront costs.

Does every lender offer the 5% Deposit Scheme?

No. You cannot apply for the scheme directly through the government, only through a participating lender or a broker with access to the participating panel. Lenders that do participate can also assess certain borrower circumstances quite differently from one another, such as casual employment, HECS debt, or self employed income, which is why choosing the right lender for your specific situation matters as much as confirming you qualify for the scheme itself.