Last week, we spoke about building investment properties and the long-term thinking that often goes into those decisions.
This week, we’re looking at the other end of the property ladder — first home buyers — and there’s been a small but interesting shift in the market.
After sitting on the sidelines for a while, ANZ has finally joined the government’s 5% deposit scheme, becoming the last of the big four banks to jump on board. It might sound like a minor policy update, but when all four major banks participate in the same program, it usually makes those schemes much easier for buyers to access.
In other words, the big four are now officially all playing in the same sandbox when it comes to helping first home buyers get into the market with smaller deposits — which could make a real difference for buyers who have been struggling to save a traditional 20% deposit.
Have a great weekend.
After previously being the only major bank absent from the program, ANZ has now joined the lender panel for the Australian Government’s 5% Deposit Scheme (previously known as the Home Guarantee Scheme).
The scheme allows eligible first home buyers to purchase a property with as little as a 5% deposit, while single parents or legal guardians can buy with just a 2% deposit, all without needing to pay lenders mortgage insurance (LMI). For many buyers, that’s a meaningful saving, as LMI can easily run into tens of thousands of dollars depending on the purchase price.
Up until now, the scheme had included Commonwealth Bank, NAB and Westpac, along with a number of smaller lenders, but ANZ had chosen not to participate. That has now changed, with the bank confirming it has been accepted onto the lender panel and is currently working through the system and policy updates required before launching the loans.
Once live, the change means all four major banks will participate in the same government-backed program for first home buyers, which should make the scheme more accessible to borrowers across the market.
How the 5% Deposit Scheme Works
Why has the scheme expanded
The scheme was originally introduced in 2022, but it was expanded significantly in October 2025 as rising property prices made it harder for first home buyers to enter the market.
Two key changes were made: the cap on the number of applicants was removed, and property price thresholds were increased to better reflect current market values. Unsurprisingly, those changes led to a noticeable surge in demand.
Housing Australia, the government body that administers the scheme, has since been encouraging more lenders to join the panel to help manage application volumes and turnaround times. The pressure has already been visible in the system — some lenders experienced large spikes in applications, with Beyond Bank even temporarily pausing new pre-approvals last year after a surge in demand.
With ANZ now joining the panel, the workload will be spread across more lenders, which should help ease bottlenecks and improve access for buyers looking to use the scheme.
ANZ’s move also comes at an interesting time
ANZ’s decision to join the scheme also comes as its housing loan book has been shrinking slightly, according to recent figures from the Australian Prudential Regulation Authority (APRA).
Data from January 2026 shows ANZ’s housing portfolio edged down slightly to $321.5 billion, making it the only one of the ten largest banks to record a decline that month.
The figures suggest softer demand among owner-occupiers, with ANZ’s owner-occupier lending falling by around $360 million, while its investor lending rose modestly.
In a competitive lending market, programs like the government guarantee schemes can become an important way for banks to reconnect with new borrowers — particularly first home buyers entering the market.
And with ANZ now joining the panel, the scheme effectively has the full participation of Australia’s four largest lenders.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
