Five per cent deposits scheme may help first home buyers
But does it fall short in today’s property market in the Murraylands?
First home buyers can now purchase a property with only a five per cent deposit thanks to an expanded federal government scheme.
The deal is even better for single parents and legal guardians, who can purchase a property with a 2% deposit.
But buyers may be concerned about how few Murraylands properties they will be eligible to buy.
Senator for South Australia Marielle Smith said the scheme, which started last Wednesday, would cut years off the time it took first home buyers to save for a deposit.
“We want to help young people and first home buyers achieve the dream of home ownership sooner,” she said.
Under the scheme, the government acts as a guarantor over part of the first home buyer’s loan, allowing them to enter the market with less savings and avoid paying lender’s mortgage insurance.
If a buyer becomes unable to make repayments on their home loan, and selling the property does not cover the amount they owe, the government steps in to repay the lender.
The 5% deposit scheme expands and replaces the previous first home guarantee scheme, regional first home buyer guarantee and family home guarantee.
It removes income limits and is intended to increase the number of homes available for purchase by raising property price caps to reflect growth in the housing market.
In the electorate of Barker, which includes the Murraylands, more than 523 locals have bought homes through the scheme.
Housing and Homelessness Minister Clare O’Neil said the scheme would help create opportunities for young people to enter the housing market.
“The (federal) government is stepping up to level the playing field and back a new generation of first home buyers into the housing market,” she said.
To be eligible for the scheme you must meet all of the following criteria:
- be an Australian citizen or permanent resident at the time of obtaining the home loan
- be at least 18 years old
- be a first home buyer, or someone who has not owned property in Australia within the last 10 years
- be able to contribute a deposit of at least 5% of the property value
- be buying or building the property to live in
The scheme will also apply only to homes which fall under a price cap.
In the Murraylands, that price cap is $500,000.
Skyrocketing prices mean few houses are eligible
The median price of houses sold in Murray Bridge between October 2024 and September 2025 was $530,000, according to the Real Estate Institute of South Australia.
This an increase of 16.5% from the 2023-24 average price.
At the time of publication, only five homes in Murray Bridge were being advertised for sale at realestate.com.au for less than $500,000.
There were also seven vacant land listings.
However, to fall under the scheme, properties must be purchased as a house-and-land package or as vacant land with a separate contract to build a home; and the combined price of the property and build must fall under $500,000.
Murray Bridge is not the only community whose first home buyers may find the scheme falls short of the current market.
According to the Real Estate Institute, in the June 2025 quarter, South Australia recorded a 3.14 per cent increase in median house prices from the previous quarter and a 11.13 per cent increase from the same time last year.
In Callington the median property price is $665,100 – almost a 30% increase from the median price in 2024.
In Tailem Bend the median house price is under the cap at $390,000, however this is $124,000 more than it was only two years ago.
The Real Estate Institute also stated that the South Australian market was impacted by a low supply of housing, and that the expanded scheme was likely to drive prices up.
- More information: firsthomebuyers.gov.au/australian-government-5-percent-deposit-scheme.
