Is there an income cap on the 5% deposit scheme?

No. The income caps were removed from 1 October 2025. First home buyers can use the scheme regardless of how much they earn.

Are there still limited places in the 5% scheme?

No. The cap on the number of places was removed at the same time as the income caps, so you don't have to wait for a place to open up.

Does Help to Buy have an income cap?

Yes. Help to Buy, the government shared equity scheme, has income caps of $103,000 for singles and $165,000 for joint applicants or single parents. That's a separate scheme from the 5% deposit scheme.

Are there property price caps on the 5% scheme?

Yes. Price caps still apply and depend on where you're buying. Check the cap for your area before you start looking.

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Straight Answers · First home

I earn over the income cap. Can I still buy under the scheme?

Bayley Clarke · Mortgage broker on the road · Last checked 16 October 2026 · 2 min read

The short answer

There's no more income cap. It's gone. Regardless of your income, you can buy under the 5% scheme as a first home buyer.

The income caps came off on 1 October 2025, along with the limit on the number of places. So get that out of your head. If an old income cap was the thing stopping you, it isn't anymore.

The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.

What changed

The 5% scheme, the Home Guarantee Scheme, used to have an income cap. Earn over it and you couldn't use the scheme, no matter how good your savings were. There was also a set number of places each year, and when they ran out, you waited.

Both of those are gone. Since 1 October 2025 there are no income caps and no limit on places. If you're a first home buyer, or you haven't owned property in Australia in the last 10 years, your income no longer rules you in or out. You can buy with a 5% deposit and skip lenders mortgage insurance.

What still applies

The income cap is gone, but the scheme still has rules. There are property price caps, and they depend on where you're buying. You need to live in the property as an owner occupier while the guarantee is on. And you still need to be approved for the loan, which means the bank checks you can afford the repayments like it would for anyone else.

Don't mix it up with Help to Buy

Help to Buy is a separate scheme where the government takes a share of the property, and it does still have income caps. So if someone tells you there's an income cap, they might be mixing the two up. The 5% scheme doesn't have one. You can do it. Get to work.

The honest bit: a higher income doesn't mean you need the scheme

If you earn well and have a decent deposit already, the 5% scheme is still worth a look, but so is buying with a bigger deposit or paying some lenders mortgage insurance. The right answer depends on the price you're buying at and how fast you could save the rest.

That's a quick numbers check, not a guess.

Want to know if the 5% scheme is your best way in?

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Next question

What's the scheme price cap where I live?

The 5% scheme caps are higher than most first home buyers think, up to $1.5M in parts of NSW.