25/08/2025
Big Changes for First Home Buyers!
The Government’s 5% Deposit Guarantee (First Home Guarantee) has just been updated — making it easier than ever to get into the market.
Previously, if you earned over $125,000 as a single or over $200,000 as a couple, you weren’t eligible. You’d need either a full 20% deposit, pay expensive Lenders Mortgage Insurance, or rely on a parental guarantor.
Now, there are no income caps, so even higher income earners can access the scheme and buy with just a 5% deposit, no LMI, and the same interest rates as someone with a 20% deposit.
To put this into perspective:
Under the new rules, as a first home buyer you can buy a property in VIC for $950,000 with just a $47,500 deposit + stamp duty.
Previously, for that same $950,000 purchase, you would have needed either a parental guarantor, paid costly LMI, or have saved the full 20% deposit of $190,000 + stamp duty.
Other key changes:
Property price caps have increased:
• VIC: from $800,000 up to $950,000
• NSW: from $900,000 up to $1,500,000
• QLD: from $700,000 up to $1,000,000
The scheme previously had limited places every year, but it now has unlimited places across participating banks.
Updates take effect October 1, 2025 (brought forward from Jan 2026).
This policy essentially acts like a parental guarantor but is provided by the government rather than a parent/family member. Helping you buy much sooner, without the massive 20% deposit saving hurdle.
