5% house deposits
The government expanded the Home Guarantee Scheme from 1 October 2025, removing all place limits and income caps while substantially increasing property price caps, allowing unlimited first home buyers to access 5% deposit loans.
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The Albanese Government expanded the Home Guarantee Scheme from 1 October 2025, removing place limits and income caps while substantially increasing property price caps.
From 1 October 2025, all first home buyers with a 5% deposit gained access to the Home Guarantee Scheme with no limit on the number of guarantees available. Income caps that previously restricted eligibility were removed, allowing higher-income first home buyers to participate. The government guarantee covers up to 15% of the property value, enabling buyers to avoid Lenders Mortgage Insurance.
Property price caps increased across all states and territories. In Sydney and NSW regional centres (Illawarra, Newcastle and Lake Macquarie), the cap rose from $900,000 to $1.5 million. Melbourne and Geelong saw the cap increase from $800,000 to $950,000. Brisbane, Gold Coast and Sunshine Coast caps rose from $700,000 to $1 million. Other capital cities also received increases: Adelaide from $600,000 to $900,000, Perth from $600,000 to $850,000, Hobart from $600,000 to $700,000, and Canberra from $750,000 to $1 million.
The Regional First Home Buyer Guarantee was merged into the First Home Guarantee, creating a single pathway for all eligible buyers. The government brought forward the scheme's expansion by three months from the originally planned January 2026 start date.
Housing Australia administers the scheme through 38 participating lenders including major banks and customer-owned institutions. In the first year, first home buyers using the scheme are expected to avoid around $1.5 billion in potential mortgage insurance costs. Since 2022, the scheme has helped over 180,000 first home buyers purchase homes with lower deposits.
Unlimited places from 1 October 2025
All income caps removed
Sydney cap: $900,000 to $1.5 million
Melbourne cap: $800,000 to $950,000
Brisbane cap: $700,000 to $1 million
5% minimum deposit required
Government guarantees up to 15% of property value
Over 180,000 buyers assisted since 2022
[2] https://www.pm.gov.au/media/albanese-government-delivers-5-deposits-all-first-home-buyers-sooner
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