Starting again · The 10-year rule Haven’t owned in 10 years? The 5% scheme may still apply
Plenty of people who owned a home years ago assume the government help is only for first home buyers. The 5% Deposit Scheme isn’t. If you haven’t held property in Australia for 10 years, you may be eligible again. What usually still changes is stamp duty.
Key takeaways
- The 5% Deposit Scheme is open to people who haven’t held property in Australia in the 10 years before the home loan date.
- In a joint application, both applicants must meet the test, and property held with a former partner counts.
- First home stamp duty concessions usually don’t apply. On an $850,000 home in NSW, duty is $32,437 instead of $9,797.
- Single parents have their own version, at 2%, which doesn’t need the 10 years.
Never owned before
- 5% deposit
- $42,500
- Stamp duty
- $9,797
Owned, 10+ years ago
- 5% deposit
- $42,500
- Stamp duty
- $32,437
Illustrative. Both buyers eligible for the 5% Deposit Scheme, established home in Sydney. NSW first home duty concessions are for buyers who have never owned. Excludes lender, legal and other costs.
How the 10-year rule works
The scheme asks one question about your history: have you held property in Australia in the 10 years before the home loan date? If not, you’re treated like a first home buyer for the scheme, even if you owned years ago.
- Both applicants. If you’re buying with a partner, both of you need to meet it.
- A former partner’s property counts. If you owned a home together, that ownership is part of your history.
- Australian property. The test is about property in Australia.
Everything else about the scheme stays the same: the price caps, living in the home, a participating lender. See the 5% Deposit Scheme explained.
A worked timeline
Say you sold a home with a former partner and the sale settled in September 2016. From October 2026, more than 10 years have passed, so the scheme may apply. If the sale had settled in 2018, you’d wait until 2028, or look at the other ways in.
Illustrative. Check the exact dates of your last ownership before you apply.
What changes even if you qualify
Stamp duty
Most first home stamp duty concessions are for people who have never owned. In NSW, a buyer who owned 10 or more years ago pays the general rate. On an $850,000 home, that’s a $22,640 difference.
The First Home Owner Grant
It’s for first home owners only, so owning before rules it out.
Help to Buy
It has its own rules: you can’t own property in Australia or overseas, and income caps apply.
Under 10 years? Other ways in
- Single parents: the 2% version of the scheme, if you won’t hold any other property once the new home settles.
- Your sale proceeds: if you sold recently, they’re often the deposit.
- A family guarantee or a profession policy, if one fits. See low deposit home loans.
Why this matters
About a third of the people who rang me had owned before. They’d separated, sold, moved cities or had a business go wrong, and many assumed the help wasn’t for them. The 10-year rule is the fact most of them hadn’t heard. Scheme rules on this page were checked against the government’s guides dated 1 July 2026.
FAQ Questions clients ask
Can I use the 5% Deposit Scheme if I’ve owned a home before?
Yes, if you haven’t held property in Australia in the 10 years before the home loan date. In a joint application, both applicants must meet that test. If you sold more than 10 years ago, you may be eligible again.
Does property I owned with a former partner count?
Yes. Property you held with a former partner counts towards the 10-year test, the same as property you owned alone. Single parents are assessed differently and can use their version of the scheme if they won’t hold any other property once the new home settles.
Does property I owned overseas count?
Not for the 5% Deposit Scheme’s 10-year test, which looks at property in Australia. Other help can be different: Help to Buy, for example, doesn’t allow you to own property overseas.
When does the 10 years start?
The test looks back 10 years from the home loan date. In practice, that usually means 10 years since your last interest in Australian property ended, often the settlement date of your last sale. Check the exact date before you apply.
Do I get first home buyer stamp duty concessions if I’ve owned before?
Usually not. In NSW, the first home concessions are only for buyers who have never owned residential property in Australia, so someone who owned 10 or more years ago pays the general rate. On an $850,000 home, that’s $32,437 instead of $9,797.
Can I get the First Home Owner Grant if I owned before?
No. The grant is for first home owners only, and it’s for new homes. Owning before, however long ago, rules it out.
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