The 5% Deposit Scheme by first home buyers in regional areas looks to be a real hit. The scheme is already seeing strong and growing regional interest. In 2023-24, roughly one in three guarantees issued under the broader Home Guarantee Scheme went to buyers in regional areas. Since 1 October 2025, the 5% Deposit Scheme expanded: there are now no caps on regional places, no income limits, and higher regional price caps — a clear push to make it accessible to more regional buyers.
Monthly data following the expansion show a surge: October 2025 saw 5,778 guarantees issued, up 48 % on the same month last year, and about one in ten home sales used the scheme.
Given this momentum, it’s likely that a substantial share — perhaps 30–40% of first home buyers from regional Australia — will make use of the 5% Deposit Scheme over the next few years (assuming stable interest rates and ongoing supply of suitable homes). The better affordability (lower deposit, no Lenders Mortgage Insurance, regional price caps) matches the needs of many regional first-time buyers.
However, uptake may be constrained by serviceability (ability to afford loan repayments) and availability of affordable homes in regional markets. If housing supply or wages don’t keep up, some eligible buyers may still be unable to take advantage.
In short, the scheme’s design and early data indicate a strong likelihood of uptake in regional Australia, especially among those who may otherwise struggle to save a large deposit.
If you’re ready to take the next step, our friendly team at Raine & Horne Wagga Wagga is here to guide you through the process.
Contact us today to arrange your stylist appointment or to discuss how we can help you achieve the best result for your sale.
