Many Australian First Home buyers (FHBs) faces a challenge of saving a large deposit to purchase their first property. The high property prices and requirements of Lenders mortgage insurance (LMI) have made the path to home ownership difficult for many.
But from October 1, 2025, a significant government change is set to open up a world of new opportunities. The Home Guarantee Scheme (HGS) is being expanded in a way that could put FHB in their own home sooner, with a deposit as low as 5% and without the need for LMI.
What’s Changing?
The federal government is making three major changes that will have a profound impact on first home buyers:
- Unlimited Places: The previous cap on the number of available spots has been removed. This means if FHBs are eligible, they can access the scheme without having to compete for a limited number of places.
- No Income Caps: The income thresholds that previously restricted access to the scheme have been scrapped. This means more Australians with a solid income can now take advantage of the program.
- Higher Property Price Caps: Property price limits across the country are being significantly increased to reflect current market conditions. For example, the cap in Sydney is rising from $900,000 to a massive $1.5 million, and in Brisbane, it’s jumping to $1 million. This means FHBs can now consider a wider range of suburbs and property types.
Why is this a Game-Changer?
The beauty of the Home Guarantee Scheme is that it allows eligible buyers to purchase a home with a deposit of just 5%. The government then guarantees a portion of your loan to the lender, which means FHBs avoid paying thousands of dollars in Lenders Mortgage Insurance (LMI).
For many, this LMI cost is a major hurdle. Avoiding it can save FHBs tens of thousands of dollars in upfront costs, and could cut years off the time it takes to save a deposit.
How Do FHBs Get Started?
As a mortgage broker, our job is to help FHBs navigate these changes and find the best home loan for their unique situation. The Home Guarantee Scheme is available through a range of participating lenders, and each has its own lending criteria.
We can help FHBs to,
Confirm Eligibility: We’ll assess personal circumstances to see if you meet the requirements of the new scheme.
Find a Participating Lender: Not all lenders offer the scheme. We can connect FHBs with the ones that do and find the best interest rate and terms.
Guide through the home buying process: Our job is to make first home purchase as simple and stress-free as possible. We’ll take care of the entire home loan process, so FHBs can move forward with confidence.
If you’ve been waiting for the right moment to buy, this could be it. Don’t let these new opportunities pass you by.
Ready to see if you qualify?
Let’s have a quick, no-obligation chat to discuss your options. We can assess your eligibility and help you get started on your home ownership journey with confidence.
