The New 5% Deposit Scheme: What It Means - Teach Me About Property

Australia’s property market is about to shift. In just one week, the government launches its new 5% deposit option for first home buyers — and this time, the rules have changed in a way that opens the door for thousands more families.

What’s Different This Time?

The income cap has been removed.

1. In the past, high-earning couples often missed out because their household income was “too good.”
2. Now, even if one partner earns $125k and the other earns $150k (a $270k combined household income), the scheme still applies.

That means professionals who have worked hard, climbed the career ladder, and built strong incomes are no longer penalised.

No More Lenders Mortgage Insurance (LMI)

Here’s the kicker: if you buy with a 5% deposit, the government guarantees the other 15%, so you don’t need to pay LMI.

1. Example: Buy at $750,000 with a 5% deposit ($37,500).
2. Normally, LMI on that loan would cost another ~$35,000.
3. Under the new scheme, that’s wiped. $35,000 saved instantly.

That’s money you keep in your pocket instead of handing to the bank for nothing.

Add Stamp Duty Savings (Sydney Example)

In NSW, buy under $800,000 and you may also pay no stamp duty.

1. Example: Buy at $800,000.
2. Deposit required = $40,000.
3. No LMI.
4. No stamp duty.

Gone are the days where buyers needed $100k–$200k in cash just to step onto the ladder. Now, $40k is enough to get in the game.

Why This Matters Right Now

The entry-level market is about to heat up:

1. More buyers can qualify.
2. Competition for properties under $800k will rise.
3. Prices at this end of the market are likely to push upward.

That’s why timing is everything. If you wait, you risk paying more later.

How Families Can Use This

1. A $400,000 property could be bought with just $20,000 deposit.
2. A $750,000 property could be bought with $37,500 deposit.
3. With the TMAP-2-STEP strategy, families can start with what they can afford and upgrade later using equity.

This is not about buying your forever home on day one. It’s about getting a foothold and letting the market work for you.

✅ Your Next Step

The government has removed the barriers. The opportunity is here. All that’s left is action.

👉 If you’re already a TMAP student — book in with your mentor now and get your numbers ready.

👉 If you’re not part of TMAP yet — join us today and let us show you how to execute the TMAP-2-STEP and secure your family’s first property in 2025.

See you at the top of the mountain.