So, what's changing in the Home Guarantee Scheme?

The Home Guarantee Scheme allows eligible buyers to purchase or build their first home with as little as a 5% deposit, while the government guarantees the remaining 15% — helping you avoid paying Lenders Mortgage Insurance (LMI), which can cost upwards of tens of thousands of dollars.

Starting October 1, 2025, the scheme will expand significantly to benefit more Australians.

Here’s a quick breakdown of the key changes:

·       No cap on applicants — previously limited to 35,000 spots per year, the scheme will now be available to all eligible first home buyers.

·       Income limits removed — higher earners can now access the scheme without restriction, so climbing the career ladder won't work against your eligibility.

·       Higher property price caps — revised property limits better reflect the current property market, opening the door to more homes and suburbs.

How the Home Guarantee Scheme Benefits You:

It could save you time and money

Getting into your first home is no small feat — and saving a 20% deposit in the current market conditions can take years. With the scheme, you only need 5% upfront and can skip LMI, potentially saving tens of thousands of dollars and accelerating your path to homeownership.

It expands your property options

One of the most impactful changes is the increase in property price caps. For example, in Melbourne and Geelong, the price limit will rise from $800,000 to $950,000 — giving you access to more sought-after areas and a wider range of homes.

Eligible property types include:

·       House and land packages

·       Land with a separate building contract

·       Off-the-plan apartments and townhomes

·       Existing homes and townhouses

This means more choice, better locations, and greater flexibility for your first home journey.

Plus, remember these existing benefits of the Home Guarantee scheme...

It supports different family structures

You don’t need to be married or in a de facto relationship to apply. The scheme allows joint applications from family members, like siblings or cousins.

With home designs that offer dual master bedrooms, you can live together comfortably — no arguing over who gets the best room in the house.

It offers a second chance at homeownership

The scheme includes Australians who haven’t owned property in the past 10 years — perfect if you've been out of the market but are ready to dip your toes in again.

What Can You Do Now to Get Ready?

Although the promised changes aren’t due to come into effect for a few more weeks, there’s several steps to complete before securing finance and your place in the scheme. That’s why, it pays to get the ball rolling now, so that all your ducks are in a row as the expansion comes into effect.

Here’s where the expert team at Loan Gallery can lend you a helping hand. 

1. First things, first — confirm your eligibility for the scheme. With the promised changes relaxing the eligibility requirements, you’re in with an even higher chance of accessing the scheme. 

2. Next, get a grasp on your borrowing capacity. Knowing how much you’re able to borrow means that come October 1, 2025, you can quickly narrow down the house and land packages or property listings that are relevant to your price range. Start calculating how much you can borrow here.

3. Get a financial health check. You still have some time up your sleeve to get your finances in tip-top shape. Book in a free financial health check with Loan Gallery, and they’ll go through a comprehensive review of your finances, give you saving tips and advice on enhancing your buying power, and check your eligibility against various government grants and schemes.

The Countdown to October 1 Starts Now

The updates to the Home Guarantee Scheme could be a game-changer — helping more Australians realise their dream of homeownership, sooner.

If you’re ready to take the next step, Loan Gallery is here to help you every step of the way. From confirming your eligibility to tips around increasing your approval odds, now’s the time to get organised and make your first home dream a reality.

Please note:

Loan Gallery Finance Pty Ltd is independent of Simonds Homes and all advice is provided by Loan Gallery and not Simonds Homes.

The above advice is general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.

Loan Gallery Finance Pty Ltd ABN: 33 163 825 670      Australian Credit Licence: 475302

For more information on the Home Guarantee Scheme please visit https://www.housingaustralia.gov.au/