Borrowers on 5 Percent Deposit Home Loans Will End up Paying More Interest

Property prices have spiked at the fastest rate in two years.Shutterstock11/17/2025|Updated: 11/17/2025In August, Prime Minister Anthony Albanese lauded his government’s announcement of 5 percent home loan deposits across the board. The move was intended to ensure more Australians could enter the housing market sooner, by avoiding the typical 20 percent deposit required by many lenders.Through the scheme, the government guarantees a portion of a first-home buyer’s home loan.Crystal-Rose Jones is a reporter based in Australia. She previously worked at News Corp for 16 years as a senior journalist and editor.Author’s Selected Articles