Buying your first home just got a whole lot easier. The government’s updated First Home Buyer 5% Scheme is designed to help families break into the property market with less savings and more support. Here are the five key facts every first home buyer needs to know.

1. Buy with Just a 5% Deposit

Under the scheme, all first home buyers can purchase a property with only a 5% deposit. That means the dream of homeownership is no longer out of reach for those who don’t have hundreds of thousands saved up. By the government’s definition this now also includes people who haven’t owned a home for ten years, but may have previously.

2. No Lenders Mortgage Insurance (LMI)

Here’s where the savings really kick in: if you use the scheme, you won’t pay Lenders Mortgage Insurance.

  • On a $500,000 home, you save about $14,000.
  • On a $1 million home, you save about $41,000.
  • On a $1.5 million home, you save about $65,000.

That’s real money that stays in your pocket — instead of going to the bank.

3. Income Thresholds Have Been Removed

Previously, singles had to earn under $125,000 and couples under $200,000 to qualify. Those limits are gone. The scheme is now open to all first home buyers, regardless of income level.

4. Property Price Caps Have Increased

The property price caps have been lifted across major cities:

  • Sydney: from $900,000 → $1.5 million
  • Melbourne: from $800,000 → $950,000
  • Brisbane: from $700,000 → $1 million

This makes the scheme far more practical for buyers in big cities where prices have continued to climb.

5. Starts Earlier than Expected

Originally promised for January 2026, the scheme will now begin on 1 October 2025. That’s three months earlier, giving families a head start on securing their first home.

Why This Matters

For first home buyers, the combination of low deposit, no LMI, higher price caps, and no income limits is a game-changer. It reduces upfront barriers and allows more people to buy sooner — instead of watching prices climb further out of reach.

The TMAP Takeaway

At TMAP, we’ve always said the first property is the hardest — but it’s also the most important. The 5% Scheme is a once-in-a-generation opportunity to make that first step faster, cheaper, and smarter.

👉 Don’t wait until January. With the scheme starting in October 2025, now is the time to prepare your finances, build your strategy, and position yourself to act.

Because in the Wealth Game, action takers are money makers.