KEY TAKE-OUTS: The scheme starts on 1 October 2025 Through the Home Guarantee Scheme, Housing Australia provides a guarantee to the lender, allowing eligible buyers to purchase a home with as little as a 5% deposit, without needing to pay Lenders Mortgage Insurance (LMI). Changes from 1 October include no place limits, no income caps and higher property price caps It’s easy to check if you are eligible! A new online Eligibility Tool will be available from 1 October 2025 on the Housing Australia website The Government is keeping the great Australian Dream Alive with Changes to the Home Guarantee Scheme. Changes to the Home Guarantee Scheme means that all first home buyers will be able to purchase their first home with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). Saving time and money, allowing Australians to purchase their own home sooner. You can read the official government announcement here Are You Eligible Eligibility criteria relating to your personal circumstances include, but are not limited to, the following: You must be an Australian citizen(s) or a permanent resident(s) Have a minimum 5% deposit Be a first home buyer The property must be your primary residence Be at least 18 years old From 1 October, Housing Australia’s new Eligibility Tool can be accessed via the link below: https://www.housingaustralia.gov.au/support-buy-home/eligibility-tool New Property Price Caps The new property caps come as a welcome change. Increases mean that first home buyers have the opportunity to choose from a broader selection of properties, thanks to the increased limits. How to Apply You can apply through Participating Lenders as part of your home loan application. The lender will evaluate your eligibility, guide you through the application process, and outline the documents and information you’ll need to provide. They will then submit your application to Housing Australia and let you know whether you qualify. See the list of participating lenders below: https://www.housingaustralia.gov.au/home-guarantee-scheme-participating-lenders ABOUT NELLY TONG Nelly joined the Coutts Property Law and Conveyancing team in March 2024, working from our Campbelltown Office. Nelly has acquired her Conveyancing Studies at Macquarie University with Distinction. For further information, please don’t hesitate to contact: Nelly Tong Conveyancer info@couttslegal.com.au 1300 268 887 Contact Coutts today. This blog is merely general and non-specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you. Contact Us