Buying your first home just got a little easier. From October 1, the Federal Government is rolling out the First Home Buyer Guarantee scheme for all eligible first-time buyers. Instead of waiting years to save the full 20% deposit, buyers can now purchase with just 5% down. The government steps in to guarantee the other 15%, meaning buyers can avoid the hefty cost of Lenders Mortgage Insurance (LMI).

 

For many households, this is a game changer. LMI often runs into the tens of thousands, making the gap between saving and buying feel impossible. By removing that cost, more Australians will get the chance to step into the market sooner.

 

Key changes include:

•Rising property price caps: $1.5m in Sydney/NSW, $950k in Melbourne/Victoria, and $1m in Brisbane/Queensland

•Increased income thresholds, opening the scheme to more households

•Freeze on changes to the National Construction Code until 2029, to keep building affordable and supply flowing

This isn’t just about policy—it’s about opportunity. For first-home buyers who’ve been locked out by rising prices, this reprieve could make the difference between renting for another decade and owning their own home.