If you’re shopping in the ‘affordable’ bracket, competition may be getting tougher, not easier.
 
Since the federal government expanded the 5% Deposit Scheme in October 2025, Cotality analysis shows homes under the scheme’s price caps have generally outperformed homes above them. In the December quarter, median prices rose 3.6% under the cap versus 2.4% above the cap.
Why would the lower end grow faster?
  1. Buyers moved early. Some people acted ahead of the official start date to buy before conditions got tighter.
  2. Borrowing limits are doing the steering. With serviceability still a hurdle, more buyers are gravitating toward properties that feel manageable week to week.
Quick reality check before you rely on the scheme
  • Price caps matter (and vary by location).
  • Not every lender treats the scheme the same way.
  • Your borrowing limit still depends on normal credit checks.
If you’re considering a purchase under the 5% Deposit Scheme cap, contact me, and I’ll check eligibility, lender participation and what the repayments look like.