Buying your first home is becoming more accessible. Starting October 2025, key updates to Australia’s Home Guarantee Scheme will make it easier and more affordable to enter the property market—even if you don’t have a 20% deposit saved. While not a traditional grant, this scheme offers tangible financial support that helps first-time buyers get a head start.
What’s Changing with the Home Guarantee Scheme?
The Home Guarantee Scheme enables eligible buyers to purchase a property with as little as a 5% deposit while avoiding costly Lenders Mortgage Insurance (LMI), which can save thousands. From October, the program will see major improvements: income restrictions will be lifted, allowing more people to qualify; limits on application numbers will be removed, meaning you can apply any time without concerns about quotas; and property price caps will rise, giving buyers access to a broader range of homes. The requirement remains just a 5% deposit and no LMI, aiming to remove common financial obstacles that have held back many hopeful buyers.
Why This Makes Home Ownership More Achievable
Accumulating a 20% deposit can be daunting in today’s housing market, but these updates pave a clearer path to owning a home sooner. Avoiding LMI not only saves money upfront but can also reduce your loan amount. With higher price limits, buyers have more options in better locations. Plus, with more people eligible, there’s a real chance to get into the market earlier than before.
Is Now the Best Time to Buy?
Timing the market perfectly is difficult, but acting sooner rather than later could be wise. The expanded scheme might increase demand in a tight housing market, which could push prices up. With interest rates stabilising and these improved conditions, first-home buyers have a unique opportunity to move forward with confidence and less financial pressure. If you’ve been thinking about buying, this could be the moment to start planning and take the first steps toward owning your own home.
Need help getting started? Speak to us today to find out how the new First Home Buyer Grant can work for you.
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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