The 5% First-Home Deposit Scheme Is Landing in October — Here’s What You Really Need to Know
The government has fast-tracked its expanded First Home Guarantee or Home Guarantee Scheme, so it kicks off on 1 October 2025, three months earlier than planned. It’s not just a nice promise, this is big and amazing change for first home buyers!
Here’s the lowdown:
A 5% deposit and no LMI (because the government guarantees the rest)
Unlimited places, no more competing for spots
No income caps: if you’re a first home buyer, you’re in
Higher property price caps to match today’s market, think Sydney up to $1.5M, Melbourne up to $950K, Brisbane to $1M
What This Means for First-Home Buyers
1. You could save years on saving
For the average house, a 20% deposit might mean up to a decade of rent and saving. With a 5% deposit, government backing, and no LMI, you're stepping into homeownership years earlier—possibly saving hundreds of thousands in rent.
2. Bigger choice — real access
No more arbitrary income limits or capped entry numbers—it’s wide open. And with price caps boosted, you might actually afford that dream suburb after all.
3. Competition will likely spike
Experts warn that more buyers = heated demand. House prices could rise 3% to nearly 10% in hot markets. So if you want in on October 1, pre-approval won’t just help, it might be essential.
Pro Tips Before You Dive In
Get pre-approved early, you’ll move faster when listings go live.
Save beyond the 5% deposit if you can, every extra dollar gives you more breathing room.
Talk to a broker, even though we don’t operate in the scheme, we’ll help ensure your loan itself is the right fit for your life goals (and not just the cheapest).
Check your long-term budget, making sure repayments won’t balloon for you if rates rise.
We are excited as it’s a rare shot for first-home buyers and an opportunity you don’t want to watch slip by.
More access. Less cash needed. And a real chance to actually own!
