First-home buyers: Where to buy with just 5 per cent deposit

Australia’s first-home buyers are about to get their biggest break in years, with the Federal Government’s expanded Home Guarantee Scheme set to open the door to property ownership for thousands.

And now, a new report has revealed the 20 suburbs where buyers can snap up a home with as little as a 5 per cent deposit – without the crushing burden of lenders’ mortgage insurance.

From October 1, the scheme will remove its annual cap on participants, allowing eligible Australians to purchase homes under specific price thresholds with dramatically reduced upfront costs.

The scheme, previously capped at 35,000 first-time buyers annually, will now be uncapped, subject to property price thresholds.

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For first-home buyers, this could be the golden ticket to enter the market after years of being priced out.

Adam Duster, CEO of Oliver Hume Home Solutions, said the list – compiled by home-buying service MyFirstHome – highlighted where first-home buyers should look to be ready, come October 1.

Suburbs listed include Tarneit, Wyndham Vale, Cranbourne East and Beveridge in Melbourne’s booming north and west, Rocklea, Yarrabilba, Ripley, Deebing Heights in South East Queensland and Morphett Vale, Port Adelaide, Munno Para, and Seaford in Adelaide.

Top 20 Suburbs for First Home Buyers as Policy Shift Opens the Door to Ownership. Source: MyFirstHome

“If buyers act quickly, they can avoid tens of thousands of dollars in LMI costs and secure a home in some of the country’s fastest-growing suburbs,” Mr Duster said.

“This is the best chance many Australians have had in years to get on the property ladder.

“For years, rising interest rates, tighter lending rules, and skyrocketing property prices have pushed first-home buyers to the sidelines. This policy changes everything.”

According to Oliver Hume’s data, the proportion of first-home buyers in its projects across Melbourne, Adelaide, and South East Queensland plummeted from 54 per cent in mid-2023 to just 41 per cent in July 2025.

Rose Britton recently bought her first home in Lindisfarne. Picture: Nikki Davis-Jones

But with the expanded scheme, that trend is expected to reverse sharply.

“If buyers act quickly, they can avoid tens of thousands of dollars in LMI costs and secure a home in some of the country’s fastest-growing suburbs,” Mr Duster said.

“This is the best chance many Australians have had in years to get on the property ladder.”

The expanded Home Guarantee Scheme couldn’t come at a better time.

With interest rates stabilising and property prices showing signs of softening in some markets, first-home buyers have a narrow window to act before competition heats up.

“Demand will be fierce,” Mr Duster warned. “

We’re already seeing strong interest across our communities as buyers prepare for the October 1 launch. Those who hesitate risk missing out.”

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