First Home Buyer Scheme Update: Buy with 5% Deposit & No LMI
Major Changes to the Home Guarantee Scheme from 1 October 2025
The Home Guarantee Scheme Just Changed Everything.
Get Ready to Buy Sooner.
Big news for first home buyers across Australia. From 1 October 2025, major updates to the Home Guarantee Scheme will make it easier for more Australians to get into the property market—with just a 5% deposit and no Lenders Mortgage Insurance (LMI).
Whether you’ve been saving for a while or are just starting your home ownership journey, these changes open up more opportunities than ever before. Plus, you don’t have to navigate this unprecedented access alone. Turn to The Melbourne Mortgage Company (TMMC) as your local expert in securing this guarantee.
What’s New?
Here are the key updates to the Home Guarantee Scheme in Australia that directly benefit you:
Buy with just 5% deposit and pay no LMI
Save tens of thousands of dollars and get into the market faster.
No income caps
Income is no longer a barrier to accessing the scheme. High-income earners can now apply.
Unlimited places available
The scheme is now an entitlement for eligible applicants, removing the rush and ending the waiting lists.
Increased property price caps
Buy in more desirable suburbs. The scheme now reflects current market values, especially for buyers in Victoria.
Simplified eligibility rules
The criteria are broader than ever, including single parents, joint applicants, and those who haven’t owned in 10+ years.
Available for both new and established homes
No limitations on property age. You can choose a brand-new house, an off-the-plan apartment, or an established home in your ideal suburb.
Updated Property Price Caps
From 1 October 2025, new property price caps will apply under the scheme, reflecting current market conditions and enabling buyers to access a wider range of properties.
Example Caps (New Limits):
| Region | Previous Cap | New Cap (From Oct 2025) |
|---|---|---|
|
Sydney, Newcastle, Illawarra
|
$900,000
|
$1,500,000
|
|
Melbourne & Geelong
|
$800,000
|
$950,000
|
|
Brisbane, Gold Coast, Sunshine Coast
|
$700,000
|
$1,000,000
|
|
Perth
|
$600,000
|
$850,000
|
|
Adelaide
|
$600,000
|
$900,000
|
|
ACT
|
$750,000
|
$1,000,000
|
|
Regional Areas
|
Varies
|
Increased (e.g. $700k–$800k in many areas)
|
These revised caps allow first home buyers to consider more desirable areas that were previously out of reach.
Who’s Eligible?
The expanded criteria for the First Home Buyer Scheme mean more Australians can qualify than ever before. Check if you meet the eligibility requirements for the Home Guarantee Scheme in Victoria:
The scheme is open to:
First home buyers
People who haven’t owned property in the last 10 years
Singles or couples (including friends or siblings buying together)
Australian citizens or permanent residents
Buyers with at least a 5% deposit
Applicants who meet the lender’s standard serviceability requirements (no income cap applies)
Why This Matters
Eliminating Lenders Mortgage Insurance (LMI) can save eligible buyers between $15,000 and $30,000 or more, depending on the property value and deposit size. This is money that stays in your bank account or can be used for other vital expenses.
Additionally, with only a 5% deposit required, buyers can enter the market sooner—reducing the time spent saving while prices continue to rise.
Ready to Find Out if You Qualify?
The new Home Guarantee Scheme may have unlimited spots, but it’s still a complex system to master. Navigating the rules, particularly the increased property caps and different lender serviceability criteria here in Victoria, takes a specialist’s touch. While the government guarantees your deposit, TMMC can help find the right loan and the lowest rate. That’s our value—taking the stress out of the complex details.
TMMC will guide you through the Home Guarantee Scheme in Victoria by:
- Confirming your First Home Guarantee Scheme Eligibility under the new rules.
- Comparing ALL participating lenders (not just the big four banks) to find the best rate and loan product that aligns with the scheme for you.
- Handling the complex application process and securing your pre-approval
Don’t just rely on the first home buyer scheme—rely on an expert to make it work for you. Get in touch with us today to discuss your options and take the next step toward home ownership.