Originally meant to come into effect next year, the Albanese Governmet has bought forward it’s 5% First Home Buyer deposit policy to now start on the 1st of October this year.

Let’s see what this policy will involve.

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.

Under the changes, all first home buyers will have access, with no caps on places or income limits. Property price caps will also be set higher in line with average house prices, providing access to a greater variety of homes.

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.

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.

Source: housingaustralia.gov.au