Big News: First Home Buyers Can Enter the Market Sooner with 5% Deposit No Limits on Places or Income!
The Albanese Labor Government is helping more Australians realise their dream of home ownership sooner, by launching 5 per cent deposits for all first home buyers early on 1 October 2025, instead of next year.
Through the expanded 5 per cent deposit scheme, the Albanese Government will guarantee a portion of a first home buyer’s home loan, so they can purchase with a lower deposit and not pay Lenders Mortgage Insurance.
What’s changing from 1 October 2025?
- No place limits: all Australian first home buyers who have saved a 5% deposit can apply.
- No income caps: first home buyers with higher incomes can access the Scheme.
- Higher property price caps: to help home buyers where property prices have increased.
- Simpler access in regional areas: Regional First Home Buyer Guarantee will be replaced by the First Home Guarantee.
The Home Guarantee Scheme is available through over 30 Participating Lenders across Australia, including a wide range of customer-owned and regional banks, as well as major banks. Housing Australia will continue to work with lenders to increase access to the Scheme.
For the average first home buyer, access to the scheme cuts years off the time it takes to save for a deposit and saves tens of thousands of dollars on Lenders Mortgage Insurance. In just the first year alone, first home buyers using the scheme are expected to avoid around $1.5 billion in potential mortgage insurance costs.
The median home price in Australia today is $844,000 and 5 per cent of that is $42,200. The last time $42,200 covered the 20 per cent deposit for a median home was 2002, which shows the generational scale of this change.
The expanded scheme means a first home buyer in Brisbane can purchase a $1 million home with a $50,000 deposit. They could save up to 10 years off the time it takes to save for a deposit, save about $42,000 in mortgage insurance, and could pay up to $350,000 towards their own loan instead of paying rent.
It means that a first home buyer in Bendigo could purchase a $600,000 home with only a $30,000 deposit. They could save up to 6 years off the time it takes to save for a deposit, save about $25,000 in mortgage insurance, and could pay up to $126,000 towards their own loan instead of paying rent.
After consulting with industry, the Government will also direct Housing Australia to promote the diversity of lenders who offer the scheme, giving first home buyers greater choice to buy a home through smaller, customer-owned and regional banks.
Labor was re-elected with a clear mandate to bring down the deposit hurdle for first home buyers and this is just one part of the Albanese Labor Government’s ambitious $43 billion housing agenda. We are building more homes, backing first home buyers, and supporting renters.
Since coming to office in 2022, Labor has helped over 180,000 first home buyers get a home of their own with a lower deposit. On average, there have been 6,000 more first home buyer loans a year under Labor compared to the Coalition’s previous period in office.
How do I apply for the Home Guarantee Scheme after 1 October 2025?
- Check your eligibility with the Home Guarantee Scheme Eligibility Tool here. A new Eligibility Tool will be available from 1 October 2025. In the meantime, you can read the information on our website and above to understand the current eligibility criteria and what is changing.
- Check the new property price caps for your area (see table below).
- Contact a Participating Lender and apply.
- Lenders will submit eligible applications to Housing Australia and process pre-approval.
- Find a place to call home!
Property price caps from 1 October 2025
*Regional centres are (1) in New South Wales - Illawarra, Newcastle and Lake Macquarie, (2) in Victoria - Geelong, and (3) in Queensland - Gold Coast and Sunshine Coast.
Note: These changes are not effective until 1 October 2025. The Home Guarantee Scheme is still available for borrowers to access today with the current eligibility criteria and price caps.
Source:
https://www.pm.gov.au/media/albanese-government-delivers-5-deposits-all-first-home-buyers-sooner
Contact AZ Property for more insights about the market and learn more about current listings
Website: www.az-property.com.au
Phone: 08 9355 2757
Enquiry send to [email protected]
#AZProperty #AZPropertyWA #property #realestate #housing #perthrealestate #perthproperty #perthrealestateagent #perthpropertymarket #propertymanagement #leasingWA #propertyWA #realestateWA #propertydevelopmentwa #propertyconsulting #propertyinvestment #firsthomebuyers #homebuyers #houseforsales #housedeposit #propertypricecaps