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More than 21,000 first home buyers have been able to purchase a home sooner thanks to the government’s 5 per cent Deposit Scheme, according to figures released by the Treasury in its Mid-Year Economic and Fiscal Outlook (MYEFO) last Wednesday (17 December).
Previously known as the Home Guarantee Scheme, the 5 per cent Deposit Scheme was launched in its current form in October, three months ahead of schedule.
The government expanded the scheme by removing caps on places and income limits and also updating property price caps to reflect rising median home prices.
Under the expanded scheme, more first home buyers are to purchase a home with a 5 per cent deposit, while the government guarantees the remaining amount, enabling access to a loan without paying lenders mortgage insurance (LMI).
The Treasury also reported that the government had invested $5.4 million over four years to improve access to the scheme for first home buyers.
Since its expansion, more than 21,000 first home buyers have used the scheme, Treasury outlined.
Since 2022, the program has assisted more than 200,000 first home buyers into home ownership, according to the latest MYEFO.
Bendigo Bank celebrates 10k milestone
The government’s update came as one of the scheme’s participating lenders, Bendigo Bank, celebrated a milestone through its involvement in the program.
Bendigo Bank said it has now helped more than 10,000 customers turn their home ownership dreams into reality.
Richard Fennell, Bendigo Bank CEO, said the lender was proud to contribute.
“In an environment where housing affordability can be a challenge for many, especially our young people, Bendigo Bank is proud to partner with the federal and state governments to support our customers in their journey to home ownership,” he said.
The lender has participated in several initiatives since 2020, including the 5 per cent Deposit Scheme, the NSW Shared Equity Home Buyer Helper, and the Victorian Homebuyer Fund.
“Bendigo Bank has a track record of partnering to deliver positive customer outcomes,” Fennell added.
“The bank has now provided more than $4 billion in lending and assisted more than 10,000 customers with their home ownership goals through government schemes since 2020.
“Bendigo Bank’s purpose is to feed into prosperity. By partnering with government and offering these schemes, together we can do even more to support the aspirations of our customers and strengthen local communities.”
Additional support
The update came as the government revealed it is pledging an additional $10 billion to support states, territories, and industry in delivering 100,000 additional dwellings for sale to first home buyers, as reported by Broker Daily sister brand The Adviser.
Over eight years from 2026–27, the government’s new First Home Supply Program will provide $2 billion in grants and $8 billion in concessional loans.
State governments are also expected to contribute $2 billion in matched funding.
“In a joint statement with Finance Minister Katy Gallagher, Treasurer Jim Chalmers said Labor’s plan aims to ease the cost of living while building a more productive and resilient economy,” they said.
“The figures show a stronger budget position compared to the election and a much stronger budget compared to what we inherited from our predecessors.
“This is the only mid‑year update on record that has delivered a better bottom line every year of the forward estimates, less debt in every year of the forward estimates and net policy decisions that improve the bottom line.
“On this combination of measures, it is the most responsible mid‑year update on record.”
[Related: Qld government launches shared equity home ownership scheme]