Published 8 Sep 2025 by Cheryl Hayford
From 1 October 2025, the fast‑track expansion of the Home Guarantee Scheme in Australia will slash income caps, lower deposit requirements and open eligibility to more Australians. These updates will cut deposit saving time by about 1.7 years and reduce costs by around $25,000.
The Home Guarantee Scheme is an Australian Government initiative that supports eligible first home buyers, families, and single parents to buy a home sooner. Instead of needing the typical 20% deposit, participants may be able to purchase a property with as little as 2% to 5% deposit, without paying costly lenders mortgage insurance (LMI).
Under the scheme, Housing Australia guarantees part of the loan, allowing lenders to approve eligible buyers even with smaller deposits. This means less time saving and more time moving into your own home.
According to the Housing Industry Association (HIA), the expanded Home Guarantee Scheme could reduce the time and cost burden on first home buyers by about 1.7 years (or around $25,000). This is significant for Australians who are currently renting while trying to save.
Here’s what’s changed:
The biggest hurdle for most first home buyers is saving for a deposit while balancing rent, bills, and daily living costs. With the First Home Guarantee Scheme, eligible buyers can get into the market sooner, without the added cost of LMI (which can be tens of thousands of dollars).
For single parents and families, the Family Home Guarantee Scheme has been a game-changer, opening the door to property ownership where it may have once felt out of reach. Regional buyers are also benefitting from targeted support through the Regional First Home Buyer Guarantee.
Eligibility criteria differ depending on the scheme, but generally you need to:
You’ll also need documentation such as your Australian Taxation Office Notice of Assessment to prove income and eligibility.
Navigating government schemes, eligibility criteria, and the fine print can feel overwhelming. That’s where we step in. At MyBudget Loans, we work with you to:
Our goal is simple: to help you achieve your dream of home ownership sooner.
The updated Home Guarantee Scheme is more inclusive and flexible than ever, potentially cutting years off the time it takes Australians to save a deposit. Whether you’re a first home buyer, a single parent, or looking to settle in a regional area, there may be a pathway for you.
Ready to see if you qualify? Before you start, try our Home Loan Calculator to see an estimate of your potential borrowing capacity under the Home Guarantee Scheme. Then Enquire online or call the team at MyBudget Loans on 08 8215 7519 today and find out how we can help you get into your own home faster.
This article has been prepared for information purposes only, and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this article you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
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This page provides general information only. It does not take your personal circumstances into account and is not personal financial advice. For the scope and licensing of a particular service, check the service provider's current disclosures or contact MyBudget.
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