5% JUST GOT BIGGER!

I know what you've heard.

'You earned too much last year'.....

'You can't buy for more than $450,000'.....

'That lender has already run out of spots'....

Well, it's all about to change, and you're about to be in the driver's seat!

Australia’s First Home Guarantee Scheme (HGS) is finally getting a serious upgrade, and a 5% deposit is just the start. Here are six powerful changes that make the path to home ownership more accessible than ever.

Understanding the Changes to the First Home Guarantee Scheme

1. No More Annual Caps

Gone are the days when only a limited number of spots were available. Starting October, every eligible first-home buyer can apply, no quotas, no racing to submit on time. This change opens the door for many who felt left out before.

2. Income Limits Removed

Now that income caps are a thing of the past, higher-earning buyers can also take advantage of the 5% deposit option. This means broader access for more households. Everyone deserves a chance at home ownership, regardless of their income level.

3. Higher Property Price Caps

The updated caps now reflect real market prices, not outdated thresholds. This change almost brings prices in line with the actual cost of a house! For instance:

• Sydney: $900K → $1.5M

• Perth: $600K → $850K

• Brisbane: $700K → $1M

  
  

And so on across other states. These adjustments mean that more properties are now within reach for first-time buyers.

4. Unified Scheme, Simpler Access

The scheme has been streamlined by merging separate regional and capital offerings into a single, simplified structure. This makes it easier to understand and apply. No more confusion about which scheme applies to your area!

5. Start Date Brought Forward

Originally slated for January 2026, the expansion kicks off on 1 October 2025. This means you can start planning and applying sooner. Don’t miss out on this opportunity to secure your future.

6. Huge Cost Savings

These changes don't just save time; they also slash upfront costs. Buyers could avoid tens of thousands in Lender's Mortgage Insurance (LMI) and potentially shave years off their deposit-saving timeline. For example, avoiding LMI on a median-priced home (~$844K) means savings of approximately $42,200.

What This Means for You

• Fairer Access: Removes previous barriers like caps and income thresholds.

• More Options: Buyers can now comfortably tap into family-friendly suburbs or inner-city options thanks to lifted price caps.

• Better Cash Flow: Save on LMI and speed up your timeline to a deposit faster than ever.

• Time to Get Ready: With the scheme activating in October, preparing now gives you a jump on others.

  
  

Preparing for Home Ownership

With these changes, it’s crucial to be proactive. Here’s how to prepare for your journey towards home ownership:

1. Check Your Postcode’s New Price Cap

   Visit Housing Australia or consult your lender to understand the new price caps in your area.

   
   

2. Start Getting Pre-Approval

   Approach a participating lender. Over 30 banks are onboard, making it easier to find one that suits your needs.

   
   

3. Factor in Stamp Duty and Fees

   Remember, these may still apply and can vary by state. It’s essential to factor these into your budget.

   
   

4. Get Your Paperwork Ready

   You’ll need proof of savings, identification, and ATO certificates. Having these documents ready will streamline the process.

   
   

5. Plan Strategically

   Use this time wisely to lock in your biggest advantage. The earlier you start, the better positioned you will be.

   
   

Conclusion

The First Home Guarantee Scheme is evolving, and these changes are designed to make home ownership more accessible. With the removal of caps and the introduction of a unified scheme, now is the time to take action. Don’t let this opportunity pass you by. Start your journey towards owning your first home today!