17/08/2026
📊 Fresh Analysis: 5% Deposit Scheme Buyers Are Holding Strong
There’s been a lot of noise lately about first‑home buyers entering the market with small deposits — but the latest data tells a very different story.
New analysis from REA Group shows that just 87 households who purchased under the expanded 5% Deposit Scheme are currently in negative equity.
That’s less than 0.2% of the 48,000+ properties bought through the program since October 2025.
In other words:
👉 99.8% of buyers using the scheme still hold positive equity, even after recent nationwide price softening.
Why?
Because first‑home buyers tend to purchase more affordable homes, often in regional markets where values have remained resilient.
Top Performing Regions (Equity Levels):
QLD – Outback: 14.2%
WA – Outback: 12.7%
SA – Outback: 12.2%
Lower Equity Metro Areas:
Sydney – Eastern Suburbs: 0.8%
Melbourne – Inner East: 1.9%
Mornington Peninsula: 2%
This reinforces a key truth:
A well‑structured entry into the market — even with a 5% deposit — can still be safe, strategic, and wealth‑building when guided properly.
For first‑home buyers, this is encouraging news.
For investors, it highlights the ongoing strength of regional markets.
For anyone watching the Australian property landscape, it’s a reminder that headlines rarely tell the full story.
If you’re exploring your first home, planning an investment, or want clarity around your borrowing strategy, I’m always here to help you navigate the numbers with confidence.
— Michael Downie
