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The changes, which took effect from 1 July, include a higher property price cap for Darwin, expanded higher-value regional markets, updated refinancing arrangements, and new retained savings requirements for some applicants.
The 5 per cent Deposit Scheme, launched in its expanded form in October 2025, enables eligible buyers to enter the market with as little as a 5 per cent deposit, with the government guaranteeing up to 15 per cent of the loan (or up to 18 per cent for single parents), allowing borrowers to avoid lenders mortgage insurance (LMI).
By the end of March 2026, the scheme had helped over 300,000 Australians into their first home.
Property price caps adjusted
One of the most significant changes is the introduction of separate capital city and regional property price caps for the Northern Territory.
The Darwin cap has increased from $600,000 to $750,000, while the rest of the NT remains at $600,000.
The change brings the NT in line with other jurisdictions that operate separate property price caps for metropolitan and regional markets, reflecting the price growth the city has seen in recent years.
Minister for Housing, Homelessness, and Cities Clare O’Neil said: “Housing affordability is one of the biggest issues for the Territory.
“We’re expanding our massively popular 5 per cent Deposit Scheme to more Territorians, by lifting the property price cap to $750,000. That means more properties, more choice, and more first home buyers who will get the chance to pay off their own mortgage, not their landlords.”
The scheme has also expanded higher property price caps to four additional regional markets in NSW.
New regional centres that now qualify for the larger $1.5 million price cap include the Central Coast, Coffs Harbour–Grafton, Mid North Coast, and Richmond–Tweed in NSW, alongside the existing regional centres of Illawarra, Newcastle, and Lake Macquarie.
Outside of NSW, regional centres eligible for their corresponding states’ higher price caps remain Geelong in Victoria ($950,000) and the Gold Coast and Sunshine Coast in Queensland ($1 million).
Refinancing rules updated
The scheme’s refinancing settings have also been updated to provide greater flexibility for borrowers looking to switch participating lenders.
Under the changes, refinancing inquiry responses will remain valid for 42 calendar days, up from the previous 30-day limit.
Applicants refinancing from one participating 5 per cent Deposit Scheme lender to another will also be able to capitalise eligible refinancing fees and costs into their new loan, removing the need to fund those expenses upfront.
Some lenders are still working through the operational impacts of the changes before updating their processes.
New retained savings requirements
New retained savings requirements also now apply to scheme places reserved on or after 1 July.
Under the updated rules, eligible applicants must not retain savings exceeding six months of living expenses plus six months of home loan repayments after drawdown. For construction applications, an additional 5 per cent buffer also applies.
The changes are intended to ensure the scheme remains focused on buyers who require assistance to enter the property market, rather than applicants with substantial available savings.
In correspondence to brokers and seen by Broker Daily, Australia New Zealand Banking Group (ANZ) said it was aware of the updated retained savings requirements and was assessing the impact on its systems and processes.
In the meantime, the bank said it would continue applying its existing $30,000 maximum retained savings policy under its Mortgage Credit Requirements until further updates are implemented.
[Related: Auction retreat prompts more measured buyers, brokers say]
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