The Home Guarantee Scheme

Home Guarantee Scheme begins, October 2025

1st October 2025, marks the start of the Federal Government’s Home Guarantee Scheme expansion. It’s designed to support eligible first home buyers to buy their first home sooner, with a deposit as little as five per cent, with the Government acting as guarantor of 15 per cent of the loan to reach the 20 per cent deposit required to avoid lenders mortgage insurance (LMI). While the scheme isn’t new, the expanded scheme has unlimited places, uncapped incomes, and increased property price caps based on location.

In Queensland, the property price caps have increased to $1 million for Brisbane, Gold Coast and the Sunshine Coast, and $700,000 for the rest of the state. In the short-term, there is a risk that the scheme will put upward pressure on prices as first home buyers choose to buy sooner rather than later. However, the extent of price pressures will depend on a range of factors, including how supply responds and the effectiveness of policies on the supply side working in parallel.