Buying your first home is one of life’s biggest milestones, but for many Australians, the challenge of saving a 20 per cent deposit can feel like an impossible hurdle. Finance Broker at Highview, Renato Mastromanno, discusses how these changes could make home ownership a reality sooner.
Commencing 1st October 2025, the Federal Government has expanded the First Homebuyer Guarantee Scheme which can ease that burden and open doors for thousands of first home buyers.
The scheme allows first homebuyers to purchase a property with just a 5 per cent deposit, and without paying a Lenders Mortgage Insurance (LMI), because the government assures the remainder of the deposit in the case of a default. Normally, buyers who don’t have the full 20 per cent deposit are required to pay LMI, which can add thousands of dollars to the overall cost of a home loan, and often, impact ability to purchase a property.
What’s changing:
- No place limits: the Scheme will remove limits to the number of Government guarantees available so that all Australian first home buyers who have saved a 5% deposit can apply.
- No income caps: first home buyers with higher incomes can now access the Scheme. Previously, single applicants could not earn greater that $125,000 per annum and joint applicants, $200,000 per annum. This change enables many high income individuals and households to now qualify for the scheme and potentially achieve the great Australian Dream.
- Higher property price caps: to help home buyers where property prices have increased. These price caps will vary depending on location. As example, the maximum purchase price for Victoria – capital city and regional centre, has increased from $800,000 to $950,000 bringing this more in line with the median home price in Australia today of $844,000.
- Simpler access in regional areas: Regional First Home Buyer Guarantee will be replaced by the First Home Guarantee.
While the scheme won’t suit everyone, it could be a game-changer for those who are ready to buy but struggling to reach the 20 per cent deposit. With property prices continuing to rise in many areas, entering the market sooner rather than later could make a big difference in the long run.
Why this matters
The Home Guarantee Scheme is available through over 30 Participating Lenders across Australia, including a wide range of customer-owned and regional banks, as well as major banks. Navigating the various lenders to find the most suitable loan to meet your personal financial position can be stressful and time consuming.
At Highview, we see first-hand how overwhelming the process of buying your first home can feel — from saving a deposit to navigating lender requirements. Government programs like this are designed to give everyday Australians a leg-up, but it’s important to understand the fine print and make sure the option works for your situation.
That’s where the right guidance comes in. Our lending specialists can:
- Assess whether you meet the scheme’s eligibility criteria.
- Compare lenders and products that participate in the initiative.
- Help you plan for the ongoing costs of home ownership, not just the deposit.
Your next step
If you’ve been thinking about buying your first home, now is the time to start planning. Even if you’re not quite ready to purchase, getting the right advice early can put you in the strongest position to take advantage of opportunities like this.
Our Finance team are here to walk you through the process. Contact the team today to discuss how the new scheme could support your property goals.
E finance@highview.com.au
T (03) 5990 1000
Information Links:
https://www.pm.gov.au/media/albanese-government-delivers-5-deposits-all-first-home-buyers-sooner
