New data indicates that nearly 1,500 properties purchased using the Australian government's 5% deposit scheme for first home buyers have been converted into investment properties. Housing Australia, which manages the program, provided this data in response to a Senate estimates question in June.
From its launch in 2020 until May 2026, 1,486 homes were released from the scheme due to their conversion into investment properties. These conversions represent a small fraction of the 208,000 total guarantees issued during that period.
The scheme allows first-time buyers to borrow 95% of a property's value, with the government guaranteeing the loan and waiving lenders' mortgage insurance. The Albanese government amended the scheme in October 2025 to no longer exclude high-income earners. Since this change, the scheme has facilitated an average of over 5,600 home purchases each month, compared to just over 3,400 in the preceding year.
The data also shows that the scheme has been utilised by 155 singles earning more than $300,000 and 92 couples earning over $400,000. The highest-earning recipient was a couple with an income exceeding $674,000. Treasurer Jim Chalmers dismissed criticism regarding high-earners' access, stating that some markets make it difficult for people, even on good incomes, to enter the property market.