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The Federal Government has announced that from 1 October 2025, all first home buyers will be able to purchase with just a 5% deposit under the expanded First Home Buyer Guarantee.
This scheme isn’t new, but the changes are significant. Until now, there were strict caps on the number of places, income thresholds, and lower property price caps. From October next year, those barriers will be removed. That means no income limits, no caps on places and higher property price caps across most regions.
For first home buyers, this is a major shift. It means you could get into the market sooner, without waiting years to save a 20% deposit. It also means avoiding Lenders Mortgage Insurance, which can save tens of thousands of dollars.
There are trade-offs. With more buyers able to enter the market, demand could increase and drive property prices higher. Borrowing with a smaller deposit also means carrying more debt, which needs to be factored into your long-term planning.
As Mark explains:
“If you sit back and wait until you’ve saved a 20% deposit, the market could move faster than you can. Rates are already easing, and that puts upward pressure on prices. Getting in sooner with a smaller deposit can make more sense than waiting years while the goalposts keep shifting.”
The key is being prepared. Banks and lenders will be competing for borrowers under this scheme. If you’ve got your finances in order ahead of October 2025, you’ll be in the best position to move quickly.
If you’re a first home buyer and want to know whether this scheme could work for you, now is the time to review your numbers and get ready.
We are based on the beautiful Queensland coast, between the Sunshine Coast & Brisbane and we offer a complimentary home loan broking service.
Make an appointment today for an obligation-free chat, to talk about what you need and how we can help.
We recently helped clients refinance a home loan with a sky-high interest rate (over 10%) and clear their ATO debt and personal loans all while keeping repayments steady. With equity and the right paperwork, we reduced their rate to under 7% and gave them a clean slate. If tax debt is weighing you down, let’s talk strategy.
After a challenging property search full of delays, setbacks, and a long probate process, a Moreton Bay area couple finally settled on their dream home. Thanks to early planning, lender coordination, and strategic negotiation, they secured the property and moved in months before settlement.
From 1 October 2025, all first home buyers will be able to purchase with just a 5% deposit under the expanded First Home Buyer Guarantee. There will be no income limits, no caps on places, and higher property price caps.
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