For many Australians, the challenge isn’t dreaming of a new home - it’s saving the deposit to make it happen.
That’s why the federal government’s Home Guarantee Scheme has been such a valuable support - and from 1 October 2025, it’s becoming even more accessible.
The Scheme currently allows eligible buyers to purchase a home with as little as a 5% deposit - or just 2% for single parents - all without the added cost of lenders’ mortgage insurance (LMI). By guaranteeing part of the loan, the government gives participating lenders greater confidence, helping more Australians secure finance and step onto the property ladder sooner.
The exciting part? From October, big changes are coming that will expand eligibility, increase price caps, and remove limits on the number of people who can apply - opening the door to thousands more buyers across the country.
What’s Changing?
Here’s a snapshot of what’s new from 1 October:
- Unlimited places – no more caps on the number of guarantees available.
- No income limits – higher income earners who were previously excluded can now take part.
- Higher property price caps – eligibility thresholds are being lifted across many areas to better reflect today’s market.
- Simpler structure – separate guarantees, such as the Regional First Home Buyer Guarantee, will be folded into the main program.
View the Home Guarantee Fact Sheet for more details on what's covered by the expanded scheme.
Together, these changes mean more people, in more locations, will be able to use the Scheme to fast-track their home ownership journey.
How the Scheme Works
Ordinarily, buyers need a 20% deposit to avoid paying lenders’ mortgage insurance (LMI). The Home Guarantee Scheme changes that by allowing eligible buyers to purchase with a much smaller deposit. Instead of providing cash towards the deposit, the government steps in as a guarantor to the lender, reducing the risk for the bank and allowing the loan to proceed. Importantly, the guarantee doesn’t remove all costs: buyers still need to budget for stamp duty, legal fees and other upfront expenses.
To access the Scheme, you must apply through a participating lender, who will check eligibility and process the application. Eligible properties are broad and include new and existing homes, house-and-land packages, off-the-plan apartments and building on vacant land with a contract to build.
Why It Matters
These changes are designed to make home ownership more attainable at a time when saving for a deposit has never been harder. By lowering the deposit requirement, buyers can step into the market sooner and redirect money that might have gone towards lenders’ mortgage insurance (LMI) into other parts of their purchase. Higher property price caps also broaden the range of suburbs and regions within reach. And with income limits now removed, the Scheme is accessible to more Australians than ever before. Taken together, these updates make the path to owning a home not only more flexible, but also more realistic for a far greater number of people.
Taking the Next Step
If you’re considering taking advantage of the Scheme:
- Check your eligibility – Housing Australia administers this guarantee and has produced a helpful Home Guarantee Scheme Eligibility Tool which can help you understand the current eligibility criteria.
- Talk to a Participating Lender – they’ll help you apply and confirm what you qualify for.
- Understand your budget – don’t forget stamp duty, legal fees and other upfront costs.
- Explore your options with us – our team can help you find the right design and location to make the most of the Scheme.
For aspiring buyers, it could be the support you need to finally bring your home ownership plans to life. For more information or to check your eligibility, click here.
Want to learn more about how the Home Guarantee Scheme could help you build with Metricon? Call 1300 METRICON or speak to one of our New Home Advisors today.
