First Home Buyer Guarantee 2025

For many Australians, saving for a deposit is the biggest hurdle to buying a first home. The First Home Buyer Guarantee (FHG) 2025 is designed to change that. From 1 October 2025, major updates to the scheme will make it easier for more people – including single parents – to purchase property with a smaller deposit and without paying costly lender’s mortgage insurance (LMI).

Buy a Home with Just a 5% Deposit

The First Home Buyer Guarantee allows eligible buyers to enter the market with as little as a 5% deposit, with the government guaranteeing up to 15% of the property’s value. This means you can borrow up to 95% of the purchase price and avoid LMI.

For single parents and single legal guardians, the Family Home Guarantee is even more generous, allowing a purchase with only a 2% deposit. The government guarantees up to 18% under this program.

First Home Buyer Guarantee 2025 – Who Can Apply?

To qualify, you must:

• Be an Australian citizen or permanent resident
• Be at least 18 years old
• Plan to live in the property (not invest)
• Not have owned property in Australia in the last 10 years
• Provide a minimum 5% deposit (or 2% for single parents/guardians)

What’s New from 1 October 2025?

The government’s changes significantly expand access:

• No income caps – higher earners now eligible (previously $125k single, $200k joint)
• Higher property price caps – increased by an average of $150,000 nationwide (Sydney up almost 70%)
• No annual place limits – previously capped at 35,000 buyers
• Regional access simplified – the regional scheme is now merged into the FHG

Why This Matters for First Home Buyers in 2025

These changes make it easier to:

• Buy an entry-level house or unit in Sydney, Melbourne, Brisbane, Adelaide, or regional centres
• Save years off the deposit timeline (up to 5 years in Sydney, 4 in Brisbane or Canberra)
• Compete for higher-priced homes thanks to raised property caps
• Access the market even if your income is above previous thresholds

For single parents, the Family Home Guarantee is the lowest-barrier path into homeownership, requiring only a 2% deposit.

First Home Buyer Opportunities by City

• Sydney – Property price cap increased by $600,000, cutting saving time by up to 5 years
• Brisbane and Adelaide – Caps lifted by $300,000, saving buyers around 4 years
• Regional centres – No place limits and simplified rules mean faster access to homes in areas such as Lake Macquarie, Newcastle, Geelong, Sunshine Coast and Gold Coast

Why Act Quickly?

The lowered deposit requirements and increased property caps will bring more buyers into the market. That means greater competition and faster-selling properties. Acting early could make the difference between securing your ideal first home and missing out.

How First National Real Estate Helps First Home Buyers

At First National Real Estate, we make navigating the First Home Buyer Guarantee 2025 simple:
✔ Guidance on eligibility and government schemes
✔ Access to homes across your city and regional centres
✔ Local experts who know your market inside out
✔ Negotiation support to secure the best price and terms
✔ Off-market opportunities you won’t find elsewhere

Take the First Step Towards Homeownership

With the First Home Buyer Guarantee, saving for a deposit no longer has to take a decade. Whether you’re a first-time buyer with a 5% deposit or a single parent using the 2% pathway, 2025 is shaping up to be the best chance in years to enter the property market.

Contact your local First National Real Estate agent today and see how close you are to owning your first home.

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