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The latest wave of the Home Guarantee Scheme is now open, with 50,000 new places on offer for FY25–26.
The Home Guarantee Scheme is administered by the independent body, Housing Australia, and aims to help home buyers enter the property market by offering low deposit mortgages that do not require lenders mortgage insurance.
While a standard 20 per cent deposit is usually required to purchase a home, eligible buyers are able to instead pay a 5 per cent deposit under the First Home Guarantee or as little as 2 per cent through the Family Home Guarantee.
From today, 50,000 places will be available for FY25–26 across the three guarantees:
- 35,000 places for the First Home Guarantee.
- 10,000 places for the Regional First Home Buyer Guarantee.
- 5,000 places for the Family Home Guarantee.
Since the launch of the Home Guarantee Scheme in January 2020, Housing Australia said the initiative has helped more than 230,000 home buyers fast-track their entrance into the property market.
While placement limits will still apply for the Family Home Guarantee scheme over FY25–26, the federal government is expected to fulfil its recent election pledges by removing income and placement limits for the guarantee in January 2026.
The revision would enable all first home buyers to purchase a home with a 5 per cent deposit, as opposed to the current criteria that limit eligibility to singles earning less than $125,000 per year, and couples with a combined income of up to $200,000 annually.
Ahead of the change, Housing Australia CEO Scott Langford said the new placements for FY26 would help a broad range of Australians step onto the property ladder.
“We’re thrilled to announce the release of 50,000 new Home Guarantee Scheme places, ensuring that more Australians – whether they’re first-time buyers, regional residents, or single parent families – can achieve their dream of home ownership, sooner,” Langford said.
Following the announcement, the Mortgage and Finance Association of Australia (MFAA) encouraged members to be alert and aware of policy changes.
“We encourage our members to review the Housing Australia website for more information as well as the MFAA’s new Home Buying Schemes in Australia guide, which can be found in the Purchasing Property section of our Find a Broker website,” it said.
This article was originally featured in Broker Daily sister brand REB.