For many Australians, stepping onto the property ladder feels out of reach. Rising house prices and the struggle to save a 20 per cent deposit often delay the dream of homeownership. That’s why the First-Home Buyer Scheme is such a game-changer.
The scheme allows eligible first-home buyers in Australia to purchase a property with just a 5% deposit. The government then acts as guarantor for an additional 15%, so buyers avoid paying Lender’s Mortgage Insurance (LMI)—a cost normally charged when a deposit is less than 20%.
This translates to big savings:
By cutting this upfront cost, the scheme lets first-home buyers enter the market sooner and focus their savings on paying down their mortgage.
From 1 October 2025, the First-Home Buyer Scheme will expand with two major changes:
These changes mean more Australians will be able to access a low deposit home loan through the scheme.
The expanded scheme lowers entry barriers for thousands of new buyers. By removing income restrictions and lifting property caps, the government is giving more people the opportunity to own their first home.
However, property experts note that greater demand could add pressure to prices, especially if housing supply doesn’t keep pace. Treasury estimates the scheme’s impact on prices will be modest—around 0.5% nationally over six years—but first-home buyers should remain mindful of this.
The First-Home Buyer Scheme 2025 offers a unique opportunity to enter the housing market with a low deposit and no LMI costs. With changes coming in October, now is the time for first-home buyers to get prepared and take advantage of this support.
If you’re considering buying your first home, understanding how this scheme works could save you tens of thousands of dollars—and bring you closer to achieving your dream of homeownership.