Nearly 1,500 properties bought using Australia’s first home buyers' 5% deposit scheme converted into investments

The federal government's 5% deposit scheme for first home buyers has resulted in the purchase of nearly 1,500 properties that have been converted into investments, according to new data. The scheme, which has been in place since 2020, allows high-income borrowers to borrow 95% of a property's value without having to pay costly lenders' mortgage insurance.

Labour had previously excluded high-income borrowers from the scheme, but this was changed in October 2025. The scheme has been criticized for benefiting the wealthy, with housing spokesperson Barbara Pocock stating that the intention was to help first home buyers on lower incomes. In response to the scheme's data, housing spokesperson Barbara Pocock claimed that the scheme was meant to help first home buyers on lower incomes, but it has instead benefited high-income earners. The government has only had to cover 13 defaults under the scheme, at a total cost of $604,537.