Federal Scheme Lets Bendigo First-Home Buyers Put Down Just 5 Per Cent

The government's expanded First Home Guarantee scheme, which allows eligible first-home buyers to purchase with a 5 per cent deposit instead of the traditional 20 per cent, is expected to directly affect hundreds of Bendigo households currently locked out of property ownership. Under the policy, buyers earning under regional caps (currently around $125,000 for couples) can access mortgages insured by the government, reducing the upfront cash barrier that has kept many younger residents in the rental market longer.

For Bendigo's property landscape, where median house prices sit around $480,000 to $520,000, the policy's impact varies sharply by household type. Young professionals and dual-income couples earning within the threshold stand to benefit most: they could enter the market with $24,000 to $26,000 in savings rather than $96,000 to $104,000. Conversely, single-income households, casual workers and those earning above the threshold—including many healthcare, education and skilled trade workers in the region—remain ineligible. Local real estate agents note that Bendigo's growing rental demand reflects this gap: people unable to access the guarantee often remain renters longer, keeping pressure on an already tight rental market where vacancy rates hover below 2 per cent.

The policy says it will support construction of new homes through increased demand, which could flow through to Bendigo's building trades and apprenticeship pipelines. However, the scheme does not directly address rental assistance or support for households unable to save even 5 per cent, or those renting while waiting for sufficient equity. Community housing advocates note that Bendigo's homelessness and rough sleeping have increased 15 per cent over the past two years, a cohort entirely outside the guarantee's scope.

Regionally, the policy recognises Bendigo's lower price point compared to Melbourne, making the deposit gap smaller in dollar terms. But it also means regional wage stagnation—Bendigo's median household income sits below state average—narrows the pool of eligible buyers. Families on age pension or disability support receive no assistance from the guarantee.

The policy's real-world effect in Bendigo will depend on whether construction supply can meet demand and whether rental pressure eases as first-home buyers transition out of the rental pool. Treasury modelling suggests the scheme will add approximately 5,000 to 10,000 first-home buyers nationally per year; local take-up figures are not yet publicly available.

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