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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.
*This article is general information only and does not constitute financial advice. Your personal circumstances will need to be assessed before any product or proposal is recommended. Mark Hind is an Authorised Credit Representative (ACR 519951) of Outsource Finance Pty Ltd, Australian Credit Licence 384324.
You've seen the ads a big, bold interest rate that looks incredibly competitive. But there's another number sitting quietly beside it that tells a very different story.
The RBA has lifted the cash rate to 4.35%, and most lenders are expected to pass it on. If you've got a mortgage in the Moreton Bay region, your repayments are likely going up.
When the Reserve Bank of Australia raises the cash rate, it can directly affect home loan interest rates and mortgage repayments.
Whether you're just starting to explore your options or ready to move Mark and the team are here to help. Get in touch for a no-obligation chat and find out what's possible for your situation.
