Home Guarantee Scheme

From October 1, 2025, the Australian Home Guarantee Scheme was significantly expanded, effectively becoming the Australian Government 5% Deposit Scheme. Key changes include the removal of place and income caps, higher property price limits, and the integration of regional buying support into the general scheme, making it more accessible for a broader range of first-home buyers with as little as a 5% deposit. 

Key Changes to the Scheme

• Unlimited Places:

The cap on the number of eligible first home buyers was removed, meaning any eligible individual or couple can apply. 

• No Income Limits:

The previous income thresholds (e.g., $125,000 for singles, $200,000 for couples) have been eliminated. 

• Higher Property Price Caps:

The maximum property price limits have been increased to reflect current market conditions, providing access to more homes. 

• Simplified Regional Access:

The separate Regional First Home Buyer Guarantee was folded into the main scheme, simplifying access for those in regional areas. 

What This Means for First-Home Buyers

• Lower Deposits:

Eligible first home buyers can purchase a home with a deposit as low as 5%. 

• No LMI on the Guarantee Amount:

The scheme allows buyers to avoid paying Lenders Mortgage Insurance (LMI) on the guaranteed portion of their home loan. 

• Broader Eligibility:

More first-home buyers, regardless of income or whether they were previously excluded due to location, can now access the scheme. 

How to Apply

• The scheme is available through over 30 participating lenders in Australia. 

• You should check your eligibility and discuss your options with your chosen mortgage broker. 

• More information can be found on the Housing Australia website.