How Over 200,000 Australians Bought Their First Home Years Sooner

Here’s some really exciting news: Over 200,000 Australians have already bought their first home using a special government program that helped them get into the property market years earlier than they thought possible. And from October 2025, this program got even better – with unlimited home buyer scheme places available for everyone, and the ability to buy a home with a 5% deposit Could you be next?

The Amazing Success Story

Let me share some numbers that will blow your mind. Since the Home Guarantee Scheme started, it has helped more than 200,000 Australians achieve their dream of home ownership. That’s like filling the entire Melbourne Cricket Ground two and a half times with happy new homeowners!

Here’s what makes this even more special:

In 2023-24, 1 in 3 first home buyers used this scheme to buy a home with a 5% deposit.
More than 52% of users were under 30 years old
Women made up more than half of all home buyers using the scheme
The scheme has helped almost 40,000 key workers (like nurses, teachers, and social workers) buy homes

And the best part? On average, people who used this program bought their home 4 to 4.5 years sooner than they would have without it!

What Is This Magic Program?

It’s called the Home Guarantee Scheme (or HGS for short), and it’s run by the Australian Government through an organization called Housing Australia. Now with more spaces, the new unlimited home buyer scheme will be able to help even more people.

The scheme works like this:

You only need to save a 2% or 5% deposit depending on the scheme, (instead of the usual 20%)
The government guarantees part of your loan to the bank
You don’t have to pay Lenders Mortgage Insurance (LMI)
You can buy a home with a 5% deposit years sooner!

What’s Lenders Mortgage Insurance (LMI)?

Normally, if you don’t have a 20% deposit, banks make you pay for something called Lenders Mortgage Insurance. This insurance protects the bank (not you!) if you can’t pay back your loan.

LMI can cost anywhere from $4,000 to $35,000 (or even more for expensive properties!). That’s a huge amount of money that most first home buyers would rather put towards their house!

With the Home Guarantee Scheme, you don’t have to pay this insurance at all. The government guarantees it instead. That means you save thousands of dollars!

Best of all, with the changes from October, there are unlimited home buyer scheme positions available.

The Big Changes That Happened in October 2025

This program has been around for a few years, but it just got MUCH better!

From October 1, 2025, the government made some huge improvements:

1. No More Limits on Places!

Before October 2025, only 35,000 people per year could use the First Home Guarantee. It was first-come, first-served, and spots would fill up really quickly. Lots of eligible people missed out just because they applied too late.

Now: EVERYONE who qualifies can use the scheme – there’s no limit on how many people can apply! It is an unlimited home buyer scheme, so you don’t have to worry about missing out or rushing to apply on a certain date.

2. No Income Caps Anymore!

Before, you couldn’t earn more than:

$125,000 if you were buying by yourself, or
$200,000 combined if you were buying with someone else

This meant that even if you’d saved a 5% deposit and never owned a home before, you couldn’t buy a home with a 5% deposit under the scheme if you earned too much.

Now: There are NO income limits at all! It doesn’t matter how much you earn – if you meet the other requirements, you can use the scheme.

3. Higher Property Price Caps

The government has raised the maximum price of properties you can buy under the scheme. This means 63.1% of markets analysed nationally now qualify, up from just 33% before!

Here are some of the new price caps (as examples):

Sydney, Newcastle, Illawarra area: Up to $1.5 million
Melbourne and Geelong area: Up to $950,000
Brisbane, Gold Coast, Sunshine Coast: Up to $1 million
Perth and Peel: Up to $800,000
Adelaide and outer Adelaide: Up to $800,000

Under these new caps, 93.7% of unit markets across Australia now qualify!

4. Simpler Access for Regional Buyers

Before, there were separate schemes for city buyers and regional buyers. Now it’s all been simplified into one easy-to-understand First Home Guarantee scheme for everyone!

Real-Life Examples: Of How Much The First Home Buyer Scheme Saves You

Let’s look at some real examples to show you just how powerful this scheme is:

Example 1: Buying in Brisbane

A first home buyer in Brisbane can now purchase a $1 million home with just a $50,000 deposit (5%).

Without the scheme:

You’d need a 20% deposit = $200,000
Plus LMI costs = About $42,000
Total needed: $242,000
Time to save: About 10 years

With the First Home Guarantee:

You only need 5% deposit = $50,000
No LMI costs = $0
Total needed: $50,000
Time to save: About 1-2 years

That’s a difference of $192,000 and about 8-10 years of saving time!

Plus, instead of paying rent for those extra years, you could pay about $350,000 towards your own loan – building equity in YOUR home instead of your landlord’s!

Example 2: Buying in Regional Victoria

A first home buyer in Bendigo could purchase a $600,000 home with only a $30,000 deposit.

Without the scheme:

You’d need a 20% deposit = $120,000
Plus LMI costs = About $25,000
Total needed: $145,000
Time to save: About 6-7 years

With the First Home Guarantee:

You only need 5% deposit = $30,000
No LMI costs = $0
Total needed: $30,000
Time to save: About 1 year

You could save up to 6 years off the time it takes to save for a deposit and save about $25,000 in mortgage insurance!

Who Can Use This Scheme?

Here’s what you need to qualify for the First Home Guarantee:

The Basic Requirements:

You must be an Australian citizen or permanent resident (aged 18 or over)
You haven’t owned property in Australia in the past 10 years (This is great news! You don’t have to be a true “first” home buyer – even if you owned property more than 10 years ago, you can still qualify)
You have at least a 5% deposit saved ( or 2% if you a single parent)
You’ll live in the home yourself (not rent it out as an investment)
You can afford the loan repayments (banks will still check that you can pay back what you borrow) and Awesome Lending Solutions is here to guide on the lenders you qualify with.

Who Can Apply Together?

You can apply:

By yourself (as a single person)
With your spouse or partner
With a friend or sibling
With other family members (like parents, cousins, etc.)
With up to three other people (a total of four applicants maximum)

This flexibility is great because it means you can team up with whoever makes sense for your situation!

Ready to find out if you could buy your first home years sooner than you thought?

Awesome Lending Solutions will help you:

Check if you’re eligible
Calculate your borrowing capacity
Work out how much deposit you need
Find the best loan for your situation
Navigate the entire process from start to finish

Let’s make your dream of home ownership a reality – just like we’ve done for thousands of other first home buyers!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal, nor is it intended to imply any recommendation or opinion about a financial product. It does not consider your individual situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

This article is current as at November 2025 and reflects the Home Guarantee Scheme expansion that took effect on October 1, 2025. The scheme includes the First Home Guarantee and Family Home Guarantee. Eligibility requirements, property price caps, and program details are subject to change. Always check with Housing Australia or a licensed mortgage broker for the most current information about the scheme.

How Australians Bought Their First Home Sooner