By Ramesh Kandel – Mortgage Broker & Director, Rayz Financial Services
🏡 Buy Your First Home with Just 5% Deposit — 2025 Updates for Every State & Territory
💙 A New Era for First Home Buyers
From 1 October 2025, the Australian Government’s 5% Deposit Scheme will help Australians enter the property market faster — with less savings and no Lenders Mortgage Insurance (LMI).
Key Features of the 2025 Scheme
- ✅ Buy with just 5% deposit (or 2% for eligible single parents and guardians)
- ✅ No LMI – Government guarantees up to 15% of your loan
- ✅ No income caps or quotas – open to more buyers
- ✅ Higher property price caps across all states and territories
When combined with state stamp duty concessions, buyers can save tens of thousands in upfront costs.
🌏 State-by-State Breakdown (2025)
| State / Territory | 5% Deposit Scheme Price Cap | Stamp Duty / Concession (2025) |
|---|---|---|
| Australian Capital Territory (ACT) | Up to $1,000,000 | Full exemption if household income ≤ $250,000 (+$4,600 per dependent). Applies to new and existing homes. |
| New South Wales (NSW) | Up to $1.5 million | Exemption up to $800,000, concession up to $1,000,000 for first home buyers. |
| Victoria (VIC) | Up to $950,000 | Exemption up to $600,000, concessional rates for $600K–$750K. |
| Queensland (QLD) | Up to $1,000,000 | From 1 May 2025: Full exemption for new homes or land to build (no price limit). For existing homes: exemption up to $700,000, concession up to $800,000. |
| Western Australia (WA) | Up to $850,000 | Exemption up to $430,000, concessional rate up to $530,000. |
| South Australia (SA) | Up to $900,000 | Full exemption on new homes up to $650,000, concession up to $700,000. |
| Tasmania (TAS) | Up to $800,000 | 50% discount on stamp duty for eligible first home buyers purchasing established homes. |
| Northern Territory (NT) | Up to $750,000 | First home buyer duty concessions and grants available for new builds. |
ACT Example
With a $50,000 deposit, you could buy a $1,000,000 home in Canberra, avoid LMI, and pay no stamp duty if your income is within the ACT threshold — saving more than $40,000 upfront.
NSW Example
A $50,000 deposit could secure an $800,000 Sydney apartment. You’d pay no stamp duty and no LMI, saving roughly $50,000 compared to a standard loan.
VIC Example
With a $35,000 deposit, you could buy a $700,000 home in Melbourne, qualify for reduced stamp duty, and avoid LMI — saving around $35,000–$45,000 upfront.
QLD Example (New Rules from 1 May 2025)
If you purchase a brand-new home or vacant land to build, you’ll pay no stamp duty — regardless of price. A $50,000 deposit could buy a $900,000 new home in Brisbane, saving over $30,000 in duty and LMI costs. For established homes, no stamp duty applies up to $700,000, and discounted duty up to $800,000.
WA Example
With a $30,000 deposit, you could buy a $500,000 Perth townhouse and benefit from reduced stamp duty plus no LMI, saving over $25,000 upfront.
SA Example
A $35,000 deposit could secure a $600,000 new home in Adelaide, qualifying for full stamp duty exemption and no LMI — saving more than $35,000.
TAS Example
With a $40,000 deposit, you could buy a $600,000 Hobart home, get a 50% stamp duty discount, and pay no LMI, saving approximately $25,000–$30,000.
🤍 NT Example
A $30,000 deposit could help you buy a $500,000 new home in Darwin with duty discounts and First Home Owner Grant benefits — reducing your upfront costs by over $30,000.
💰 Why This Matters
Combining the Federal 5% Deposit Scheme with your state’s stamp duty exemptions means:
- ✅ Lower deposit required
- ✅ No LMI — thousands saved instantly
- ✅ Reduced or no stamp duty
- ✅ Faster entry into the property market
- ✅ Higher value homes now within reach
💼 How Rayz Financial Services Can Help
At Rayz Financial Services, our experienced brokers will:
- ✔ Check your eligibility for both Federal and State incentives
- ✔ Compare home loan options from participating lenders
- ✔ Guide you from pre-approval to settlement
- ✔ Make the process simple, transparent, and stress-free
Led by Antima Bisural Kandel and Ramesh Kandel, our Canberra-based team supports first home buyers across all states and territories — helping you turn your property dream into reality.
📞 Ready to Own Your First Home?
Your dream home could be closer than you think. Talk to our expert brokers today to see how much you can save under the 5% Deposit Scheme and your state’s stamp duty concessions.
📍 Get in Touch:
Rayz Financial Services
Unit 4, Ground Floor, 8 Chandler Street, Belconnen ACT 2617
🌐 www.rayz.com.au
📧 info@rayz.com.au
📞 02 6106 9988
📍 Based in Canberra | Serving clients Australia-wide
Disclaimer: This article is for general informational purposes only and does not constitute financial, legal, or property advice. Always seek independent advice before making property or loan decisions.
