5% Deposit Scheme in 2026: What it means for Donnybrook buyers

In short:

• 5% Deposit Scheme guarantees have increased by around 75% since 1 October 2025.
• Housing Australia confirmed early buyers have moved into homes under Help to Buy.
• Affordability pressures are driving demand for government home buyer assistance.
• Learn how you can combine Federal and State home ownership schemes.

There’s been an increase of around 75% in Australians approved for the 5% Deposit Scheme since the expansion took effect on 1 October 2025.

Between June and September last year, 13,105 guarantees were issued.

In the four months following the removal of income caps and the introduction of unlimited places, approvals jumped to 22,921.

More than 60% of those purchases were houses, with 31% choosing units or apartments.

The 5% Deposit Scheme, administered by Housing Australia, allows eligible buyers to purchase with just a 5% deposit. Lenders Mortgage Insurance (LMI) is not required under the scheme.

Why this matters in Donnybrook

• Land prices remain comparatively accessible compared to inner Melbourne.
• Buyers are often purchasing house and land packages.
• Saving a full 20% deposit can delay entry into the market by years.

The 5% Deposit Scheme effectively reduces the deposit hurdle, allowing buyers to secure land sooner and begin building faster.

For buyers exploring land for sale in Donnybrook, this can mean entering the market with significantly less cost upfront.

About the 5% Deposit Scheme

• Buyer contributes a minimum 5% deposit for the property.
• The government guarantees up to 15% of the loan.
• LMI is not required under the scheme.
• Approved lenders treat the loan as if a 20% deposit has been provided.
• Check your eligibility here.

Visit or contact our Land Sales Centre to understand the upfront costs of buying land in Donnybrook, including stamp duty, site costs and building variations.

If you’re researching deposit support, it’s also worth reviewing government grants available in Victoria in 2026 to understand how Federal and State assistance can work together.

Why growth corridors benefit

Growth corridor communities like Donnybrook often align with the 5% Deposit Scheme property price caps.

Donnybrook (3064) is considered to be part of Melbourne metro where the eligible property price cap is $950,000 (2026 price cap).

This makes estates such as Peppercorn Hill particularly relevant for eligible buyers.

If you’re purchasing land in a new residential development, it’s important to understand the difference between titled vs untitled land in Donnybrook, as this can impact when you can access finance and start construction.

Please note: when building a new home on vacant land with separate contracts, the total land price plus build costs need to come in under the price cap to be eligible.

Check the price cap on a postcode

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What is the Help to Buy Scheme?

Unlike the 5% Deposit Scheme, Help to Buy is a shared ownership model, where the Australian Government will contribute to the cost of the home and own that share.

Eligible applicants must have at least a 2% deposit, then receive a contribution of up to 30% of the purchase price for existing homes or 40% for new homes.

The scheme officially launched on 5 December 2025 and has since “conditionally or fully approved” over 2,356 places.

Of these, 278 homes have been purchased using Help to Buy, and over 2,078 are preparing to buy, Housing Australia said in a media release.

“As of 31 January, 10 per cent of applications have come from single parents and 64 per cent from single applicants… With a median deposit of just $29,000.”

Housing Australia has confirmed that early applicants have started moving into homes purchased using the Help to Buy Scheme.

Learn more about Help to Buy at firsthomebuyers.gov.au

Why some Donnybrook buyers may consider it

• Stable income but limited borrowing capacity.
• Desire for lower monthly repayments.
• Preference to enter the market sooner with a smaller loan.

For new builds in Donnybrook, the higher 40% contribution for new homes may be helpful.

Why Donnybrook aligns with Australian Government home buyer schemes

Donnybrook offers a structured masterplanned environment suited to first home buyers.

• Masterplanned community design.
• Access to schools and community facilities.
• Open space and parkland.
• Ongoing infrastructure investment.

Ready to explore house and land packages? Find out more

Practical next steps for Donnybrook buyers

Understanding eligibility, price caps and lender participation is an essential part of the process.

1. Check eligibility with Housing Australia.
2. Check your finances with a mortgage broker.
3. Contact our Land Sales Consultants to find a suitable lot.
4. Visit Peppercorn Hill display homes, speak to builders to understand total build cost.

Get started by contacting Peppercorn Hill Land Sales Centre

Call: 1300 266 291

Email: [email protected]

Land Sales Centre: 34a Albury Avenue, Donnybrook VIC

Open Hours: 7 Days, 10:00am – 5:00pm

Display Home Village open hours may vary. Refer to individual builder websites for more information.

FAQs

How many people are using the 5% Deposit Scheme in 2026?

Housing Australia’s data shows 36,529 people were approved for the scheme between 1 October 2025 and 31 January 2026.

Can I use the 5% Deposit Scheme to buy land in Donnybrook?

Yes, provided you meet the scheme’s eligibility criteria, property price caps and lender requirements under the scheme.

Does the Australian Government own part of your home under Help to Buy?

Yes. Under Help to Buy, the government contributes up to 30–40% of the purchase price and holds an equivalent equity share.

Are government home buyer schemes worth it?

These schemes reduce deposit barriers and improve mortgage serviceability, making home ownership achievable sooner for eligible Australians.

Explore house and land options today

• View available land for sale in Donnybrook
• Visit the Peppercorn Hill Display Village
• Review the Peppercorn Hill masterplan

DISCLAIMER

* Subject to separate land and build contracts for specified lots only, available until sold. Your land sale contract will set out all binding terms relating to the lot, and your building contract will set out all binding terms for the build component. While all reasonable care has been taken in providing information, the promoter/Developer takes no responsibility for the accuracy, currency, reliability, or correctness of any statements by or in relation to builders featured herein or their built form products. For further details on any builder promotion, statements, inclusions, or pricing, please refer to your builder and building contract.

^ Prices should only be used as a guide and are based on publicly available property finance calculators; indicative costs are not intended to be an exhaustive calculation of all the fees and charges that you may be required to pay in relation to any loan or property. Borrowers should seek personal financial advice before deciding how much to borrow and know the actual amount approved will vary depending on their personal circumstances and between lenders. Interest rates subject to change without notice. Content provided herein is for general information purposes only, it does not take into account your personal circumstances or objectives and has not been provided for the purpose of securing any loan with any lender for you. Prospective buyers should make and rely on their own enquiries, refer to their contract for full terms and conditions, and obtain independent advice including legal and financial advice prior to purchase.

Grants and eligibility conditions are subject to Federal and State Government rules – please see: https://firsthomebuyers.gov.au/australian-government-5-percent-deposit-scheme, https://www.sro.vic.gov.au/first-home-owner/applying-first-home-owner-grant and https://firsthomebuyers.gov.au/australian-government-help-buy-scheme for further details and eligibility criteria. DFC makes no warranties or representations regarding the accuracy of any forecasts, advice or opinions stated herein. © Copyright 2026. Dennis Family Corporation Pty Ltd ABN 67 605 630 144.