Home Guarantee Scheme Changes

From 1 October 2025, the Australian Government expanded the Home Guarantee Scheme (the 5% Deposit Scheme / First Home Guarantee) to help more first home buyers purchase with a smaller deposit and avoid Lenders Mortgage Insurance (LMI).

What’s changed:

No income caps

One of the biggest shifts is that income caps have been removed for eligible first home buyers under the expanded scheme. That means many buyers who were previously excluded can now be considered.

Unlimited places (no waitlist)

Previously, the scheme had a limited number of places each year. Now, it offers unlimited scheme places—which makes planning and timing much simpler.

Higher property price caps

Price caps have been increased in many areas (and they still vary by location). This matters because caps determine whether a particular property can be purchased under the scheme.

How the scheme helps

In plain English, the First Home Guarantee can help eligible buyers purchase a home with a smaller deposit (often 5%) and potentially avoid paying Lenders Mortgage Insurance (LMI)—because the Government provides a guarantee to the lender (it’s not a cash grant).

Who may be eligible?

Eligibility depends on the scheme rules and your lender’s assessment, but the common themes include:

• You’re buying as an owner-occupier (you intend to live in the home).
• You have at least a 5% deposit (and there’s also a 2% deposit option for eligible single parents under the wider Home Guarantee Scheme streams).
• The property price is within the current cap for your area.
• Your loan is with a participating lender (not every lender offers the scheme).

Participating lenders (important)

The scheme is accessed through participating lenders, and the list is maintained on the official First Home Buyers site.

In practice, the fastest path usually looks like:

• check eligibility + price caps early
• choose a participating lender that fits your scenario
• get pre-approval organised before you commit to a contract

Ready to check your eligibility?

If you’re thinking about buying your first home in 2026—or you want to know whether the expanded scheme applies to you—reach out and we can help you:

• sense-check eligibility and deposit requirements
• confirm the price cap for the suburbs you’re targeting
• match you with a participating lender that suits your situation
• guide you through the steps so nothing gets missed

📩 Get in touch today to get started.

General information only — not financial advice. Eligibility rules, price caps, and participating lenders can change. Approval depends on your circumstances and the lender’s assessment.

‍