Borrowers on Labor’s 5 Percent Deposit Home Loan Scheme Likely to Pay More Interest: CBA Chief

Property prices have spiked at the fastest rate in two years.

An aerial view of completed housing in a recently developed estate in Clyde North in the federal seat of Holt in Melbourne's south-east in Australia on March 26, 2025. Asanka Ratnayake/Getty Images

In August, Prime Minister Anthony Albanese lauded his government’s announcement of 5 percent home loan deposits across the board. The move was intended to ensure more Australians could enter the housing market sooner, by avoiding the typical 20 percent deposit required by many lenders.

Through the scheme, the government guarantees a portion of a first-home buyer’s home loan.