First Home Guarantee Scheme - Update

Stephanie Soto

Head of Sales & Marketing

What is the Home Guarantee Scheme?

The Home Guarantee Scheme is an Australian Government initiative that helps home buyers to buy a home sooner. The Home Guarantee Scheme supports home buyers who have saved a small deposit, and meet other eligibility criteria, to get a home loan to buy a home. There are three Guarantees available to suit different types of buyers.

How does it work?

Home buyers usually need a deposit of 20% of the Property Value to get a home loan, and those with a smaller deposit may require Lenders Mortgage Insurance (LMI). Under the Home Guarantee Scheme, Housing Australia provides a Guarantee to the lender, so home buyers only need a 2% or 5% deposit depending on the type of Guarantee. This helps home buyers to buy a home sooner, with lower upfront costs.

The Federal Government has announced an earlier start date for the expanded 5% Home Deposit Scheme. Instead of launching in January 2026, it will now begin on 1 October 2025 — giving buyers a head start on achieving their property goals.

Here’s what this means for you as a first home buyer:

• You’ll only need a 5% deposit to get into the market.
• The government will guarantee up to 15% of your loan, which means you can avoid paying costly Lenders Mortgage Insurance (LMI).
• The scheme is now open to all first home buyers across Australia, with no income or regional restrictions.
• Property price limits in Victoria have been lifted to $950k, to better match today’s markets

This update creates even more opportunities for Australians to take their first step into homeownership — and we’re here to help you every step of the way. If you’d like to know how this scheme could work with your new home journey, our team is ready to chat. 

Our Finance Partner - Mortgage Domayne

To benefit from this scheme you must talk to a Participating Lender about the most suitable Guarantee for you. They will assess your eligibility and submit an application to Housing Australia to reserve a Guarantee place for you which will be held for 14 days, to give you time to complete your application and apply for a home loan. As there are so many home loan options out there, working with the right broker can make choosing one a much simpler process. Mortgage Domayne brokers specialise in Construction Finance and can ensure that your loan is structured correctly adhering to relevant timeframes and bank policies.

Mortgage Domayne provides cutting edge solutions to finding and securing your ideal home loan, backed by strategic partnerships with over 25 lenders and other organisations. They guide everyday individuals and families through the complex home loan process, from the initial meeting to settlement day and beyond. Their reputation is built on always putting our customers needs first, paying meticulous attention to detail and ensuring open communication at all times.

Mortgage Domayne's highly experienced team is committed to helping you achieve your property goals. From specialist brokers to highly skilled administrative and support personnel, you’re in the very best of hands. You can start the conversation with Mortgage Domayne here: https://mortgagedomayne.com.au/contact-us/

In summary

• New launch date: 1 October 2025
• Deposit required: just 5%
• No LMI payable
• More buyers will qualify, with higher property price caps

Helpful Links

If you’d like to find out how this scheme could help with your new home journey, get in touch with our team today. Alternatively, we've created a list of useful links for you to explore in your own time. 

Find out more about the Home Guarantee Scheme

Check your eligibility

Explore the Factsheet here

Read more FAQs