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Nearly 50 per cent more first home buyers tapped into the deposit scheme in October compared with the same month last year, government figures show.
Around 10 per cent of home buyers in October used the government’s expanded 5 per cent deposit scheme to get on the property ladder, according to new government data.
Figures from Housing Minister Clare O’Neil, seen by Broker Daily and confirmed by Housing Australia, show 5,778 first home buyer guarantees were issued under the scheme in October 2025.
This was 48 per cent higher than the 3,901 guarantees issued in October 2024, before the scheme was expanded.
At the start of last month, the refreshed 5 per cent deposit scheme (previously known as the First Home Guarantee scheme) launched, removing income limits and placement caps.
It enables eligible first home buyers with small deposits (between 5-19 per cent) to access a mortgage without needing to pay Lenders Mortgage Insurance.
The 5,778 guarantees reflect around 10 per cent of house sales, based on Property Exchange Australia (PEXA) figures (which show an average of about 57,000 monthly residential property transactions a month).
Looking ahead, Treasury estimates that 70,000 homes will be bought in the first year of the expanded scheme, 20,000 more than under the previous place cap.
Is the scheme pushing up house prices?
While the refreshed deposit scheme has received praise from many in the broking industry, others have highlighted potential drawbacks, including the stronger demand pushing house prices higher in the longer term.
In response to the criticism, the government noted that the number of homes purchased using the scheme is small in the context of the broader housing market, meaning the expanded scheme will have a “very minor impact” on house prices.
Treasury also flagged that house prices have risen consistently since the 1980s and claimed the expanded scheme will have a 0.6 per cent price impact on house prices after six years.
However, property values have already been rising rapidly. Property values hit a national record high of $858,000 in October 2025, according to PropTrack, while separate research from Cotality showed home values rose 1.1 per cent in October, the fastest monthly gain since mid-2023.
Some have cited the new guarantee scheme as contributing to the growing price issue, as demand continues to outstrip supply during the busy Spring selling season.
Minister for Housing, Homelessness and Cities Clare O’Neil commented: “We know that people are doing it really tough when it comes to housing, so I'm really happy that 5,778 first homes were bought with support from the Albanese Government in October,” she said.
“This means more people paying off their own mortgage and not someone else’s."
“We made a promise to first home buyers that we would help them, and that’s exactly what we’re doing.”
O’Neil has previously acknowledged the need to boost housing supply to ease price growth and said the guarantee scheme would cut the time it takes first home buyers to climb onto the property ladder.
This article was originally featured on Smart Property Investment sister brand Broker Daily.
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