A re-elected Labor Government will give all first home buyers access to 5 per cent deposits and invest $10 billion to build up to 100,000 homes for sale only to first home buyers.
We want more Australians to buy a home of their own sooner – with lower deposits.
Labor will enable every Australian to buy their first home with a 5 per cent deposit. There will be higher property price limits and no caps on places or income, in a major expansion of the existing scheme.
The Albanese Government will guarantee a portion of a first home buyer's home loan, so they can buy a home with a 5 per cent deposit and not pay Lenders Mortgage Insurance.
The median home price in Australia today is $820,000. Five per cent of that is $41,000. The last time $41,000 covered the 20 per cent deposit for a median home was 2002. That's the generational scale of this change.
This means a Sydneysider and first home buyer can purchase a $1 million apartment with a $50,000 deposit with their loan guaranteed by the Albanese Government.
It means a Queenslander and first home buyer can purchase an $850,000 home with a $42,500 deposit.
It means parents that feel compelled to loan money to their adult children to help buy a home can instead use that money for their own retirements.
For the average first home buyer, this cuts the time to save for a deposit and saves tens of thousands of dollars on Lenders Mortgage Insurance.
We know the long-term fix to housing is to build more homes. That's why the Albanese Government will also invest $10 billion to partner with state developers and industry, to build up to 100,000 homes – with these homes reserved for sale only to first home buyers.
Through a decade in Government, the Liberals invested less than $5 billion in housing. Labor is now delivering a $43 billion Homes for Australia Plan. And driving the biggest home-building program since the post-war housing boom. Today's announcements build on what the Albanese Government has done in its first term, which includes:
- Giving renters a better deal – working with states to improve renters' rights and increasing rent assistance by 45 per cent for around 1 million households;
- Starting the biggest housing build in our history. Building approvals are up, labour shortages are easing, and Labor is delivering 55,000 social and affordable homes – with 28,000 already underway.
- Already helping over 150,000 first home buyers purchase with deposits of 5 per cent or less.
For 10 years Peter Dutton and the Coalition did nothing while the housing crisis got worse. In the past three years, they've voted against building more homes and supporting first home buyers – and now they're promising to cut tens of billions from housing if elected. It takes more than three years to clean up the 10 years of mess they created.
Quotes attributable to Prime Minister Anthony Albanese:
"I want to help young people and first home buyers achieve the dream of home ownership.
"When a young person saves a 5 per cent deposit, my government will guarantee the rest with their bank.
"This will help people buy their first home faster, without paying the burden of Lenders Mortgage Insurance.
"We will also invest $10 billion to build 100,000 homes to be set aside and kept affordable for first home buyers.
"We have a plan to get more Australians into their own homes – this is in stark contrast to Peter Dutton who wants to cut billions from housing."
Quotes attributable to Minister for Housing & Homelessness Clare O'Neil:
"Labor is backing in first home buyers. We will build 100,000 homes, just for them. And back in a generation of young people to get into home ownership with just a 5 per cent deposit.
"Young Australians are bearing the brunt of the housing crisis, and our government is going to step up to give them a fair go at owning their own home.
"We want to help young Australians pay off their own mortgage, not someone else's."
Key facts on Labor's 100,000 homes for first home buyers:
- Australia has a housing shortage and while home building is turning a corner, more work is needed. Not enough homes are being built at affordable prices.
- To build up to 100,000 homes for first home buyers, Labor will work with states and industry partners to identify suitable projects, including use of government land that is vacant or underutilised. To get projects moving quickly, States and Territories will fast-track land release, upzoning and planning approvals.
- This investment builds on proven models like the one operating in South Australia. For example, RenewalSA are partnering with industry to build 208 homes at Prospect Corner – with 41 homes reserved at affordable prices for first home buyers, available through HomeSeeker SA.
- The $10 billion investment will be made up of $2 billion in grants and $8 billion in zero-interest loans or equity investments primarily to States and Territories. States and Territories will be required to match the $2 billion Federal Government grant contribution.
- In addition to the 100,000 homes for first home buyers – our investment will also unlock more housing supply through these projects, including social and affordable rental options.
- Construction on the first projects will start in 2026-27, with buyers moving in from 2027-28.
Key facts on Labor expanding 5% deposit access to all first home buyers:
- Under this existing scheme, 15 per cent of the property's value is guaranteed by the Albanese Government, so a first home buyer can buy a home with a 5 per cent deposit and avoid Lenders Mortgage Insurance, which costs $23,000 for the average first home buyer.
- Labor will make every first home buyer eligible to buy with a 5 per cent deposit guaranteed by the Albanese Government – no income caps or caps on places. This significantly expands our existing program.
- Property price limits will also be raised to average house prices in each city and region.
- Changes will be implemented on 1 January 2026, following further consultation with industry.
- First home buyers will still need to meet the usual home loan eligibility requirements.
