If you’re a first home buyer dreaming of owning your own home but struggling to save for a hefty 20% deposit, the Home Guarantee Scheme could be your game-changer. Thanks to this government-backed initiative, eligible buyers can now purchase a home with as little as a 5% deposit meaning you could enter the property market up to four years sooner than expected.
Saving for a deposit often feels like running a marathon with no finish line in sight. According to PropTrack, it can take the average Australian family around 5.6 years to save a traditional 20% deposit. But with the Home Guarantee Scheme, that timeframe could shrink dramatically, putting homeownership within reach much faster.
What is the Home Guarantee Scheme?
The Home Guarantee Scheme is a federal government initiative designed to help first home buyers purchase their dream home sooner. Unlike a cash grant, this scheme doesn’t hand out money directly. Instead, it allows you to buy a property with just a 5% deposit, while the Australian Government guarantees the remaining 15%.
This guarantee gives lenders the same security as if you had already saved a full 20% deposit so you won’t need to pay Lenders Mortgage Insurance (LMI). That’s a major saving, considering LMI can cost between $25,000 and $30,000 on an average home, according to Housing Industry Association Senior Economist Tom Devitt.
In short, the Home Guarantee Scheme helps first home buyers:
- Get into the property market sooner
- Avoid paying thousands in LMI
- Start building equity faster
How the 5% Deposit Scheme Helps You Buy Sooner
While you’re saving for a large deposit, property prices often keep climbing pushing your dream home further out of reach. That’s where the 5% deposit scheme under the Home Guarantee Scheme makes all the difference.
The HIA estimates the scheme could cut the time needed to save for a deposit by up to four years. Based on that, first home buyers could save enough for their deposit in just over 18 months instead of nearly six years.
This faster pathway to homeownership means you can:
- Secure a home before prices rise further
- Begin paying off your own mortgage instead of rent
- Build wealth through property ownership sooner
Major Home Guarantee Scheme Changes from 1 October 2025
Big updates are coming for the Home Guarantee Scheme, making it even more accessible. From 1 October 2025, several new changes will take effect:
- Unlimited places available – No more waiting lists or annual caps.
- Income limits removed – Higher-income earners can now participate.
- Property price caps increased – Adjusted to reflect rising market values.
- Open to all Australian first home buyers – Broader eligibility than ever before.
These updates are expected to empower thousands more Australians to step into the property market confidently and buy their first home up to four years sooner.
Contact us today and we’ll help you check your eligibility and start your home-buying journey with confidence.
How to Apply for the Home Guarantee Scheme
Applying for the Home Guarantee Scheme is straightforward, but not all lenders are part of it. Here’s how you can get started:
- Check your eligibility – You must be a first home buyer and meet the property and deposit criteria.
- Find an approved lender – Only specific banks and lenders participate in the HGS.
- Get pre-approval – Know your budget before you start house hunting.
- Secure your dream home – With your 5% deposit and the government guarantee, you’re ready to buy.
A mortgage broker (like us!) can guide you through every step and connect you with lenders who participate in the scheme.
Why Work with a Mortgage Broker for the Home Guarantee Scheme
Navigating the Home Guarantee Scheme can feel overwhelming especially with various eligibility rules, lender requirements, and property price caps. That’s where an experienced mortgage broker becomes invaluable.
We’ll help you:
- Understand if you qualify for the scheme
- Compare lenders offering the best rates and terms
- Handle the paperwork and pre-approval process
- Maximise your borrowing power while minimising costs
Our goal is to take the stress out of home buying and make your dream of owning a home a reality sooner than you thought possible.
Take Advantage of the Home Guarantee Scheme Today
The Home Guarantee Scheme offers one of the best opportunities for first home buyers in Australia right now. With a 5% deposit, no LMI, and expanded eligibility from 2025, it’s the perfect time to explore your options.
Don’t let years of saving stand between you and your dream home. The sooner you act, the sooner you’ll be paying off your own property instead of rent.
Book a free consultation and let’s make your homeownership dream a reality with the Home Guarantee Scheme.
Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Connect with Louisa on Linkedin.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
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