First Home Buyers: Are you saving for your first home and feeling like the finish line keeps moving further away? From 1 October 2025, the Government’s First Home Guarantee scheme is expanding, and it could change the way first home buyers enter the property market.
For many Australians, this means being able to buy with a 5% deposit and avoid paying costly Lender’s Mortgage Insurance (LMI). On the surface, this sounds like the breakthrough buyers have been waiting for. But there are also some important things to understand before you make your move.
What is the First Home Guarantee?
The First Home Guarantee is designed to help buyers who don’t have a 20% deposit saved. Instead, you can purchase with as little as 5%, while the Government guarantees the remainder with your lender.
This means:
- You save years of deposit-saving time
- You could avoid tens of thousands in LMI
- You may be able to step into the market sooner than you thought possible
What’s Changing from October 2025?
The expanded scheme is designed to be more accessible to more Australians. Key changes include:
- No location limits – any first home buyer with a 5% deposit can apply, anywhere in Australia.
- No income caps – buyers with higher incomes are now eligible.
- Higher property price caps – for example, NSW (capital and regional centres) rises from $900,000 to $1,500,000. VIC increases from $800,000 to $950,000. QLD rises from $700,000 to $1,000,000.
- Simplified regional access – the separate regional scheme will be replaced by this expanded guarantee.
What This Means for First Home Buyers
The upside: it could cut years off the time it takes to save. For example, in Melbourne the median home value is $803,242. Saving a 20% deposit of $160,000 would take most first home buyers nearly nine years. Under the new scheme, you could be ready in just two years with a $40,000 deposit.
The challenge: more buyers entering the market which will create more competition. Treasury predicts at least a 0.5% increase in home prices, while other experts believe it could be higher, particularly in major cities.
Why Being Buyer Ready Matters
Becoming buyer ready is more than just saving your deposit. You need to:
- Understand your real budget and borrowing capacity
- Be clear on the type of home you want and where you can afford to buy
- Plan how you’ll inspect, negotiate and handle the real estate process
- Avoid costly mistakes like overpaying or buying the wrong home
Without a plan, it’s easy to get swept up in the excitement and lose control of the process.
How We Help
If there was ever a time to have an expert by your side, it’s now. As buyer’s advocates, we work with first home buyers everyday to:
- Build a clear buyer plan
- Research the right locations within your budget
- Give you access to listed, off-market and pre-market opportunities
- Negotiate with confidence so you don’t overpay
Our goal is simple: to make sure you buy the right home, for the right price, with confidence.
Next Steps: Start Your First Home Buying Plan
If you’re planning to buy your first home in the next 12 months, the time to prepare is now. Book a free discovery session with one of our expert buyer’s agents, and we’ll show you exactly what it takes to become buyer ready and how to take advantage of the changes coming in October 2025.
Get in touch today and take control of buying your first home.
