Big news for first home buyers! From 1 October 2025, the Australian Government is making it easier than ever to get into your own home with just a 5% deposit, no Lenders Mortgage Insurance, and unlimited places available. This is a game-changing opportunity for anyone dreaming of buying their first property.

Understanding the home guarantee scheme

The First Home Guarantee is an Australian Government initiative that helps eligible first home buyers purchase a new or existing home with a deposit as low as 5%. By providing a government-backed guarantee, the scheme allows buyers to avoid paying Lenders Mortgage Insurance, making home ownership more accessible and reducing the time it takes to save for a deposit. It’s available through a range of participating lenders across Australia, giving first home buyers a practical pathway into the property market.

What’s changing from 1 October 2025

Several key changes will make the scheme even more accessible:

• Unlimited places: No caps on the number of Government guarantees available.
• No income limits: Higher-income first home buyers can now access the scheme.
• Higher property price caps: Reflecting rising house prices, these caps allow access to a wider range of homes.
• Simplified regional access: The Regional First Home Buyer Guarantee merges into the First Home Guarantee for easier access.

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Property price caps (current vs effective 1 October 2025):

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What this means in real terms

The practical benefits of the 5% deposit scheme are significant. For example, a first home buyer in Brisbane could purchase a $1,000,000 home with just a $50,000 deposit. By avoiding Lenders Mortgage Insurance, they could save around $42,000 and cut approximately 10 years off the time it would normally take to save a deposit. Over time, money that would have gone toward rent could instead contribute directly to building their own equity.

In the first year alone, first home buyers using the scheme are expected to avoid roughly $1.5 billion in Lenders Mortgage Insurance costs — a generational opportunity for many Australians.

How Divitis can help you get started

Getting started with the Home Guarantee Scheme is simple with the right guidance. Contact Divitis today, and our team will walk you through the process, explain eligibility, and help you take full advantage of the 5% deposit scheme.

We assist first home buyers by:

• Understanding eligibility and options under the scheme.
• Comparing different lenders, including regional and customer-owned banks.
• Simplifying the paperwork and application process.
• Planning finances to maximise savings on Lenders Mortgage Insurance and deposit contributions.

Whether you’re buying now under the current rules or preparing for the expanded scheme from October 2025, Divitis ensures you take the right steps to secure your first home sooner.

Sources: Information in this article is based on official guidance from the Australian Government, Housing Australia, and the Prime Minister’s Office regarding the First Home Guarantee and the Home Guarantee Scheme.

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