Saving for a home deposit has felt like running a marathon in thongs. Slow. Painful. Never-ending.
From 1 October 2025, the Australian Government is making that race a little easier. The First Home Buyer Guarantee (FHB Guarantee) is expanding and it could cut years off the time it takes to get your foot in the door.
What’s Changing
Here’s the short version:
- Unlimited places → no more waiting lists or missing out.
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No income caps → higher earners can apply too.
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Higher property price caps → because $800k doesn’t stretch far in Melbourne anymore.
- Simpler regional access → one scheme for all, no confusion.
Why It Matters
Let’s put it into perspective:
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In Brisbane, you can now buy a $1m property with just a $50k deposit.
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In Bendigo, it’s a $600k property with $30k down.
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Across the country, first home buyers will save about $1.5 billion in Lenders Mortgage Insurance (LMI) in year one alone.
That’s money staying in your pocket or going into your own mortgage instead of rent.
The Bigger Picture
Until now, saving a 20% deposit while renting has been almost impossible. On a median Australian home ($844k), that’s close to $170k you’d need upfront. No wonder it’s felt out of reach.
From October, a 5% deposit gets you in the game. That’s about $42k. The kind of figure that makes the impossible feel possible.
How to Get Started
From 1 October 2025:
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Check eligibility (via the Home Guarantee Scheme tool)
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Look up the new property price cap for your area (for Melbourne it’s now $950k, for Sydney $1.5M, for Adelaide $900k, for Perth $850k)
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Chat to a broker (like us!) who can help find participating lenders
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Once approved, apply and buy with just a 5% deposit and no LMI
The Bottom Line
This is one of the biggest housing shifts in years. It won’t magically fix affordability but it does mean more Australians can stop saving endlessly and start owning sooner.
💬 Wondering if this could be your chance? Let’s talk through your options.
