The Australian Government has recently announced major changes to the Home Guarantee Scheme (HGS), bringing forward the implementation date and expanding eligibility criteria to help more Australians step onto the property ladder with just a 5% deposit.

What Is the Expanded Home Guarantee Scheme?

Effective 1 October 2025, the revamped HGS enables eligible buyers to purchase a home with a deposit as low as 5%—or 2% for single parents and single legal guardians—without paying expensive Lenders Mortgage Insurance (LMI). Under the new rules:

• There is no cap on the number of places; all eligible first home buyers can apply.
• Income limits have been removed for applicants and partners, opening the program to middle- and higher-income earners.
• Property price caps have increased, further broadening access.
• The Home Guarantee is available for new and existing homes, with eligibility determined by occupancy, citizenship/pr residency status, and using the home as a primary residence.
• The government guarantees up to 95% of the property value, easing lender risk and helping buyers secure loans sooner.
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Further information and updates are available directly on the official Housing Australia website and in the Treasury Supplementary Analysis PDF.

Who Does It Help, and How?

The HGS especially helps first home buyers (including previous property owners who have not owned in the past 10 years) with at least a 5% deposit, single parents eligible under the Family Home Guarantee with just a 2% deposit, permanent residents, and key workers, as well as those who previously earned too much to qualify. 

Other Home Buyer Assistance Schemes in NSW (2025)

First home buyers in NSW can combine the HGS with these government programs:

• First Home Buyers Assistance Scheme: Full or partial transfer duty (stamp duty) exemptions for homes up to $1 million.
• First Home Owner Grant: $10,000 for new homes up to $600,000 or house-and-land packages up to $750,000.
• Shared Equity Home Buyer Helper: 2% deposit for eligible key workers, single parents, and older singles.
• First Home Super Saver Scheme: Save pre-tax super towards a deposit.
• Full details: Service NSW – Home Buying Assistance

Market Impact & Final Thoughts

By removing income caps and increasing property thresholds, the expanded scheme significantly broadens the buyer pool, potentially pushing demand higher in a market grappling with limited housing supply. Experts warn this may lead to intensified competition, particularly for affordable entry-level homes. While intended to spur homeownership, the reform also raises concerns about placing buyers into high-leverage situations—especially if interest rates rise or property values fall.

With all these changes—expanded eligibility, higher property caps, and the risk of surging demand—it’s never been more important to have an expert in your corner. Entering the market without professional guidance can be overwhelming and costly, especially when competition intensifies and the margin for error gets smaller. At PB Property, we specialise in cutting through the noise: identifying genuine opportunities, conducting the due diligence, and negotiating the right price in the right area for long-term growth. Trying to navigate the new rules and a heated market alone could mean missing out on the best deals—or worse, overpaying for the wrong property. With our experience and proven strategies, we make sure you’re not just buying any property, but the right one, at the right time.