The First Home Guarantee Scheme has a new name, it’s now called the 5% Deposit Scheme, but how it actually works, and what the latest report reveals, might surprise you.

In this episode, Jack Elliott unpacks the 2024–25 Financial Year Housing Australia Report and clears up the biggest myths surrounding the scheme: that it’s brand new, that it’s tied to one political party, and that it’s high-risk for buyers. You’ll learn what the data really shows about borrower performance, how the scheme is being used across Australia, and what it actually costs to buy under it.

Whether you’ve heard mixed messages online or you’re wondering if this could help you buy sooner, this conversation will help you understand the facts and how to use the scheme strategically.

In this episode:

🔑 Why the 5% Deposit Scheme isn’t new (and how it’s evolved since 2020)

🔑 The real numbers from the 2024–25 Housing Australia Report

🔑 How arrears and defaults compare to the broader market

🔑 What “borrowing at 95% LVR” really means for risk and buffers

🔑 Why you’ll need more than a 5% deposit once all upfront costs are included.

Timestamps 

00:00 - Introduction to the 5% Deposit Scheme Report 

01:55 - What is the 5% Deposit Scheme? 

02:22 - Misconception 1: The Scheme is New 

03:56 - Misconception 2: It is a Labour Only Scheme 

04:41 - Misconception 3: There’s a high risk of defaults or arrears

05:33 - Understanding the Risk of using the 5% Deposit Scheme 

06:45 - Misconception 4: You only need a 5% deposit to buy

09:03 - What the 2024–25 Financial Year Report Shows

01:20 - The Key Takeaway when using the 5% Deposit Scheme 

10:51 - Wrap-Up & What’s Coming Next

Unlock your Free Resources 

The Truth About the 5% Deposit Scheme Resource

HGS Trends and Insights Report 2024-25

Original 5% Deposit Scheme Accountment (2020)

National Arrears Data 

Episode 1 | Unlocking Your Property Vision as a First Home Buyer 

Episode 3 | Unlocking the Real Cost of Buying Your First Home 

Episode 6 | Unlocking Asset Quality: How to Choose the Right Property as a First Home Buyer

Episode 10 | Unlocking the First Home Guarantee Scheme: Buying Your First Home With 5% Deposit

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📅 Book a chat with Jack for tailored support 

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