03/10/2025
Earlier this week marked the start of some important changes to the Federal Government’s Home Guarantee Scheme (HGS).
For many first home buyers wanting to get on the property ladder, the challenge has been saving the deposit to make it a reality.
That’s where the HGS has already been such a valuable support, and from 1 October 2025 it becomes even more accessible.
Here’s what’s changing from 1 October :-
• Unlimited places – no more caps on the number of guarantees available.
• No income limits – higher income earners who were previously excluded can now take part.
• Higher property price caps – thresholds have been lifted to better reflect today’s market.
• Simpler structure – separate guarantees will now be folded into the main program.
Ordinarily, buyers need a 20% deposit to avoid paying lenders’ mortgage insurance (LMI). Under the Scheme, eligible buyers can purchase with as little as a 5% deposit – or just 2% for single parents – without paying LMI.
This can save first home buyers thousands of dollars, leaving more funds available for their new home or other upfront costs.
By lowering deposit requirements and removing LMI costs, the expanded Scheme gives people a faster, more achievable path to home ownership.
For further information on the scheme, you are welcome to check out this link >> https://firsthomebuyers.gov.au/
Note: I have also included their factsheet, as part of this post.
