If you’ve been dreaming about buying your first home, 1 October 2025 just made that dream a whole lot closer.

The Federal Government has officially expanded the First Home Guarantee (FHG) — part of the Home Guarantee Scheme — and the updates are designed to make it easier than ever to get into your first home sooner.

Let’s break down what’s changed and how it could help you.

What Is the First Home Guarantee?

The First Home Guarantee allows eligible first home buyers to purchase a property with just a 5% deposit, without paying Lenders Mortgage Insurance (LMI).

Normally, if you have less than 20% saved, lenders charge LMI to protect themselves. But under this scheme, the government acts as your guarantor — covering up to 15% of the property value.

That can save you tens of thousands of dollars upfront and help you get into your new home faster.

What’s Changing from 1 October 2025?

Big improvements are coming — here’s a quick look:

No More Caps on Places – Previously, there were limited spots each year. Now, the program is open to all eligible buyers.

Higher Property Price Caps – More homes now fall within the scheme limits.

• Melbourne metro: up to $950,000
• Sydney metro: up to $1.5 million
• Brisbane metro: up to $1 million

No Income Limits – Whether you’re single or a couple, there’s no longer an income ceiling to apply.

Simpler Access – The Regional First Home Guarantee is now merged into one scheme, making it easier to apply wherever you live.

In short — more people, more properties, and fewer restrictions.

Who Can Apply?

To be eligible, you’ll need to:

• Be a first home buyer or not have owned property in the last 10 years.
• Plan to live in the property (not an investment).
• Meet your lender’s credit and serviceability checks.
• Buy within the updated price caps for your area.

Each lender may have slightly different criteria, so it’s best to get advice before you apply.

Why This Matters

Saving a 20% deposit can take years, especially with rising property prices. With this scheme, that barrier is lowered dramatically.

Imagine being able to buy your first home with just a 5% deposit, avoid LMI, and still get access to competitive interest rates. That’s the real power of this policy shift.

But remember, borrowing more means you’ll have higher repayments, so it’s important to have a solid budget, plan and support from a broker who understands your goals.

How Trusted Financial Choice (TFC) Can Help

At Trusted Financial Choice, we work with many of the participating lenders under the First Home Guarantee. Our team can:

• Check your eligibility and borrowing capacity
• Compare lenders and secure the best rate for your situation
• Handle all the paperwork and timelines
• Guide you through from pre-approval to settlement

We simplify the process so you can focus on the exciting part of finding your new home.

Ready to Take the First Step?

The 1 October changes are a huge win for first home buyers, but understanding your options is key. To find out more, book a chat with the TFC team today and let’s map out your pathway to home ownership.

???? 0403 167 641
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