The Federal Government has opened a pathway for more Australians – including young Filipino-Australians – to buy their first home with just a 5 per cent deposit, scrapping caps on income and property prices.
From 1 October, first home buyers can enter the property market with as little as 5 per cent down, while avoiding costly lender’s mortgage insurance. The expansion of the deposit guarantee is designed to help more people step onto the property ladder sooner, rather than waiting years to save a traditional 20 per cent deposit.
The Government says the change could transform saving timelines for young families. With the median house price now at $844,000, a 20 per cent deposit requires over $200,000. Under the new scheme, the required deposit is just $42,200 – a level last seen in 2002.
Prime Minister Anthony Albanese said the initiative was about giving younger Australians and first-time buyers a fairer chance.
“We’re making it easier for young people and first home buyers to achieve the dream of owning a home,” Mr Albanese said. “This change will open the door to thousands more buyers, helping them save money and get their keys faster.”
The impact is significant across different markets. In Sydney, a first-home buyer can now purchase a $1 million home with a $50,000 deposit. In regional Victoria, a $600,000 property in Bendigo would only require $30,000 up front.
Housing Minister Clare O’Neil emphasised that the policy is designed to shorten the long road to ownership.
“Every first home buyer can now purchase their own home with just a 5 per cent deposit,” she said. “That cuts the average time it takes to save from over a decade to just a few years, making home ownership realistic again.”
More than 185,000 Australians have already been supported through the scheme since it was first introduced. By removing income and property price caps, the government expects thousands more to benefit.
The change is part of a $43 billion housing agenda that also includes building more homes, backing first home buyers, and giving renters a better deal.
For Filipino-Australians, many of whom prioritise home ownership as a symbol of stability and success, the reform provides an earlier pathway to achieving that goal – whether in metropolitan areas where prices have surged, or in regional towns where families are looking to settle.
Full details and eligibility information can be found on the Housing Australia website.
