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The Australian Government is updating the First Home Guarantee (FHG) under the Home Guarantee Scheme, starting 1 October 2025. The program helps first-time buyers purchase a home with a minimum 5% deposit, without paying Lenders Mortgage Insurance (LMI).

Key Changes from 1 October 2025

  • Unlimited Places: No annual cap of 35,000 places.

  • No Income Caps: Eligibility is not limited by income.

  • Higher Property Price Caps: Updated caps vary by region. In New South Wales, the capital city cap will be $1.5 million.

Eligibility Criteria

  • First-Time Buyer: Must be purchasing their first home or not have owned property in Australia in the past ten years.

  • Deposit: Minimum 5% deposit required.

  • Residency: Must be an Australian citizen or permanent resident, aged 18 or over, with a valid Medicare card.

  • Property Type: Applies to new and existing homes.

How It Works
The government guarantees up to 15% of the loan, allowing buyers to get a mortgage with a 5% deposit and avoid Lenders Mortgage Insurance.

Considerations
Removing income and property price limits may increase competition and affect property prices. Buyers should carefully consider their financial situation.

For more information and to apply, visit the Housing Australia website.

Move Realty can help you explore homes within the program’s price range. Visit our FOR SALE page to see our latest listings.

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Elena Yakovleva

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