Lower-priced homes are heating up
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?
- Buyers moved early. Some people acted ahead of the official start date to buy before conditions got tighter.
- 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.
See if you qualify for the 5% Deposit Scheme
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