The Australian government announced on the 25th that it will implement the “5% Down Payment Scheme” for first-time homebuyers starting October 1 this year.
According to the statement, under this scheme, all first-time homebuyers can enjoy a down payment as low as 5% and, under government guarantee, be exempted from paying high mortgage insurance. Previously, the usual minimum down payment for home purchases in Australia was 20%, and the previous housing guarantee scheme imposed limits on places available as well as income and other conditions for first-time buyers.
The statement added that lowering the down payment threshold for first-time homebuyers is part of the Australian government’s housing plan worth about 43 billion Australian dollars (about 117.4 billion ringgit), which also includes increasing housing supply and enhancing support for renters.
Expanding the housing guarantee scheme was one of the main commitments of Australia’s Labor Party during this year’s federal election. This move will start three months earlier than the originally scheduled implementation date of January 1, 2026.
Prime Minister: Helping Young People Achieve Their Dreams Sooner
Australian Prime Minister Albanese said on the day that the early implementation of this scheme is “intended to help young people and first-time homebuyers achieve their dream of owning a home sooner.”
Australian Housing Minister O’Neill stated that the government is ramping up efforts to create a fair environment, in order to support a new generation of first-time homebuyers entering the real estate market.