From today, the expanded Australian Government 5% Deposit Scheme, previously known as the Home Guarantee Scheme, officially comes into effect.
So, what does this mean for first-home buyers wanting to enter the property market?
According to NAB Executive Home Ownership Matt Dawson, the changes will help more Australians achieve their dream of homeownership sooner.
“The removal of income caps and place limits from October 1 means more Australians can access the Australian Government 5% Deposit Scheme - especially those who would have previously missed out on being eligible,” Mr Dawson said.
“Tailoring the lift of price caps to better align with what homes actually cost across different states is a pragmatic approach that now reflects the reality of the housing market.
“It’s a welcome update that gives first home buyers a fairer shot at entering the market.
The expanded scheme allows eligible buyers to purchase a home with as little as a 5% deposit, without paying Lenders Mortgage Insurance (LMI) – a cost that is often a barrier for many.
“Buying with just a 5% deposit and no lenders mortgage insurance can make a real difference - especially for younger buyers or single-income households.
“We know saving for a deposit is a challenge, and this helps ease some of that pressure.”
“Additionally, simplifying access for regional buyers by merging the guarantees clears up confusion and helps more people outside the capital cities get the support they need.”
NAB has been involved with the Scheme since its inception in 2020 and remains committed to supporting Australians on their home ownership journey.
“We’ve been a part of the Scheme since the beginning, and we’re proud of that. This expansion is a big step forward, and we’re excited to help even more customers on their journey to home ownership.”
Mr Dawson also noted that while initiatives like the Australian Government 5% Deposit Scheme are helping address affordability challenges, boosting supply remains critical to easing the housing crisis.
“It’s important that we continue to see more homes built. Improving supply alongside initiatives like the Australian Government 5% Deposit Scheme is key to addressing the country’s housing challenge.”
If you're wondering what this means for you, or ready to explore your options, reach out to your local NAB banker or give us a call.
[SRC] https://news.nab.com.au/content/nab-news/en/news/big-changes--bigger-opportunities-as-nab-backs-first-home-buyers
