Home Guarantee Scheme changes slash years off deposit saving time

From 1 October 2025, the fast‑track expansion of the Home Guarantee Scheme in Australia will slash income caps, lower deposit requirements and open eligibility to more Australians. These updates will cut deposit saving time by about 1.7 years and reduce costs by around $25,000.

What is the Home Guarantee Scheme?

The Home Guarantee Scheme is an Australian Government initiative that supports eligible first home buyers, families, and single parents to buy a home sooner. Instead of needing the typical 20% deposit, participants may be able to purchase a property with as little as 2% to 5% deposit, without paying costly lenders mortgage insurance (LMI).

Under the scheme, Housing Australia guarantees part of the loan, allowing lenders to approve eligible buyers even with smaller deposits. This means less time saving and more time moving into your own home.

Key updates to the Home Guarantee Scheme in Australia

According to the Housing Industry Association (HIA), the expanded Home Guarantee Scheme could reduce the time and cost burden on first home buyers by about 1.7 years (or around $25,000). This is significant for Australians who are currently renting while trying to save.

Here’s what’s changed:

• Wider eligibility criteria: all citizens and permanent residents aged 18 and over, whether first home buyers or those who have not owned in the past 10 years, will be entitled to apply.
• Higher property price caps: property price limits have increased in many areas, making it possible to purchase homes in more markets across Australia.
• Support for families: the Family Home Guarantee Scheme continues to assist single parents with at least one dependent, with the option to buy a home with just a 2% deposit.
• Regional support: the Regional First Home Buyer Guarantee helps people buy in regional areas, supporting housing growth outside capital cities.

Why this matters for Australian first home buyers

The biggest hurdle for most first home buyers is saving for a deposit while balancing rent, bills, and daily living costs. With the First Home Guarantee Scheme, eligible buyers can get into the market sooner, without the added cost of LMI (which can be tens of thousands of dollars).

For single parents and families, the Family Home Guarantee Scheme has been a game-changer, opening the door to property ownership where it may have once felt out of reach. Regional buyers are also benefitting from targeted support through the Regional First Home Buyer Guarantee.

Who is eligible for the Home Guarantee Scheme in Australia?

Eligibility criteria differ depending on the scheme, but generally you need to:

• Be an Australian citizen or permanent resident
• Be at least 18 years old
• Meet the income threshold (set by the Federal Government)
• Intend to live in the property as your principal place of residence
• Fall within the property price caps set for your location
• Have not owned a home in 10 years.

You’ll also need documentation such as your Australian Taxation Office Notice of Assessment to prove income and eligibility.

How MyBudget Loans can help you use the Home Guarantee Scheme to get into your first home sooner

Navigating government schemes, eligibility criteria, and the fine print can feel overwhelming. That’s where we step in. At MyBudget Loans, we work with you to:

• Understand your eligibility for the Home Guarantee Scheme
• Compare lenders who are part of the program
• Structure your home loan application to give you the best chance of approval
• Explore other options if you don’t meet the criteria just yet.

Our goal is simple: to help you achieve your dream of home ownership sooner.

The bottom line: Home Guarantee Scheme benefits for Australians

The updated Home Guarantee Scheme is more inclusive and flexible than ever, potentially cutting years off the time it takes Australians to save a deposit. Whether you’re a first home buyer, a single parent, or looking to settle in a regional area, there may be a pathway for you.

Ready to see if you qualify? Before you start, try our Home Loan Calculator to see an estimate of your potential borrowing capacity under the Home Guarantee Scheme. Then Enquire online or call the team at MyBudget Loans on 08 8215 7519 today and find out how we can help you get into your own home faster.