Learn what's changed in the First Home 5% Deposit Scheme, including new price caps, refinancing rules, and savings requirements for first home buyers.
Buying your first home is a big step. And it just got a little easier.
The Australian Government has recently updated the First Home 5% Deposit Scheme. We’ve outlined the key changes below.
Higher price caps in more areas
The updated Scheme also brings changes to property price caps in several parts of Australia, which could open up more options for eligible buyers.
In New South Wales, four additional regional centres now qualify for the higher $1,500,000 price cap: Central Coast, Coffs Harbour–Grafton, Mid North Coast, and Richmond Tweed. This gives buyers a little more room to move when looking for a home in these areas.
The Northern Territory has also been updated to better reflect local property values. Rather than one price cap across the whole Territory, Darwin now has its own cap of $750,000, while the rest of the Northern Territory sits at $600,000.
These changes apply from the Scheme’s commencement date. For the most current price caps, it’s worth checking the Scheme Property Price Caps page directly, as these figures can be updated over time.
Refinancing is now easier
If you’re refinancing your home loan with another participating Scheme lender, there’s a change worth knowing about.
Previously, borrowers had to cover refinancing costs out of pocket. Under the updated Scheme, eligible refinancing costs can now be included in your new loan, which may reduce the amount of upfront cash required. It’s worth noting this only applies to refinancing costs. The additional funds can’t be used to top up your loan or borrow extra.
This update aims to make refinancing within the Scheme a little more accessible for eligible borrowers.
If you’re refinancing your home loan with another participating Scheme lender, there’s a change worth knowing about.
Previously, borrowers had to cover refinancing costs out of pocket. Under the updated Scheme, eligible refinancing costs can now be included in your new loan, which may reduce the amount of upfront cash required. It’s worth noting this only applies to refinancing costs. The additional funds can’t be used to top up your loan or borrow extra.
This update aims to make refinancing within the Scheme a little more accessible for eligible borrowers.
New rules around retained savings
If your Scheme place is reserved on or after 1 July 2026, new retained savings requirements will apply.
Under the updated rules, eligible applicants must not have retained savings that exceed:
- Six months of living expenses, plus six months of home loan repayments after drawdown.
- For construction applications, an additional 5% buffer also applies.
It sounds fiddly, but it’s designed to keep the Scheme focused on buyers who genuinely need the leg up. It’s important to note that not all participating lenders apply these retained savings requirements, so it’s worth checking with your lender for their specific criteria.
Why this matters for you
These changes mean more flexibility, wider access, and a bit less financial stress for first home buyers across the country. Regardless of where you live in Australia, there’s a good chance this affects your path to homeownership.
How Green Associates can help
Scheme rules can get complicated fast, especially with price caps, savings tests, and refinancing conditions all shifting at once.
That’s where we come in with a free review meeting with our lending team. They can walk you through your eligibility, help you understand what these changes mean for your situation, and get your homeownership plans moving.
