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Chat to a KeyStart Finance broker about the First Home Guarantee
Fast-Track Home Ownership with
First Home Guarantee
Buying your first home is about to become a whole lot easier. That’s thanks to changes to Australia’s First Home Guarantee which are creating a faster, simpler and smoother path to home ownership.
Previous caps and limits on eligibility for this Federal Government initiative will soon be increased or removed meaning all first home buyers can now qualify. A wider range of housing will also be accessible under the scheme.
The changes take effect from October 1, 2025.
What is the First
Home Guarantee?
The First Home Guarantee is an Australian Government initiative that helps eligible first home buyers purchase a home sooner. Home buyers with a deposit as low as 5% of the property value can secure a loan without requiring Lenders Mortgage Insurance (LMI). This means you can spend less time saving, get into your home faster and avoid tens of thousands of dollars in LMI costs.
Who is eligible for the
First Home Guarantee?
To qualify, you must be an Australian citizen or permanent resident aged 18 years or over, with minimum deposit savings of at least 5%. As an example, this means you’d need to save $45,000 for the deposit on a $900,000 house and land package.
You must be a first home buyer, or not have owned property in Australia in the last 10 years, and be an owner- occupier who is buying or building a home to live in.
Changes as of 1st October 2025
Open to all eligible buyers
No income limits
Unlimited places - Previously capped at
35,000 places per year
Increase property value of up to $900,000
- Previously capped at $600,000
No Lenders Mortgage Insurance (LMI), saving thousands
What’s remaining the same
You need to be a first home buyer and
plan to live in the home yourself
Applies to established and new properties
including house and land packages
Minimum deposit of as little as 5%
Must be over the age of 18
Must be an Australian citizen or permanent resident
How will these
changes benefit first
home buyers?
The average home buyer who uses the scheme can shave years off the time it takes to save for a deposit and avoid spending tens of thousands of dollars on Lenders Mortgage Insurance.
The Federal Government has calculated that in its first year alone, first home buyers are expected to save a collective $1.5 billion in potential LMI costs.
The increased property price caps are making more housing available to first home buyers.
What other time and money-saving options are available to first home buyers?
We always recommend meeting with your mortgage broker early on, while you are saving your deposit, to understand what is available to you. In addition to the First Home Guarantee, you may be eligible for other grants and exemptions. For example, the South Australian Government has abolished stamp duty for eligible first home buyers building or buying a new home. This is in addition to the $15,000 First Home Owner Grant and can represent significant additional savings. Other flexible finance options include graduate loans, low deposit loans and supplementary loans to cover up to a certain level of purchase costs.
We’ve seen a growing interest in shared equity loans, whereby home buyers can borrow a portion of the purchase price as an interest-free and repayment-free loan. When the home buyer sells their property, refinances or chooses to pay out the shared equity option, a portion of the property value is shared with the lender. Ask your broker to outline the eligibility criteria for these options so you can determine whether they are appropriate for your circumstances.
This scheme is expected to move fast once it launches on 1 October 2025, so get ready to make the leap into your first home.
CONTACT US TODAYOur team can answer your questions or put you in touch with the KeyStart Finance team to ensure you’re ready to take advantage of this incredible opportunity. It’s that easy!
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