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Think you can’t buy a home? How the 5% First Home Guarantee opens new doors
In this episode of the First Property Buyer Show, host Emilie Lauer speaks with Hung Chuy from Strategic Brokers to explain how the fast-tracked First Home Guarantee scheme works and its impact on first-time buyers.
The Australian government has fast-tracked the First Home Guarantee scheme, bringing its launch forward to 1 October 2025, allowing first-time buyers to purchase a home with a 5 per cent deposit and no lender’s mortgage insurance.
Additionally, the scheme has removed income caps, allowing high earners to borrow up to 95 per cent on properties of up to $1.5 million, depending on the state.
Hung said that the announcement surprised many in the real estate and financial sectors, sparking a surge in inquiries from prospective buyers.
He noted that the scheme will be available through over 30 lenders, with each having different debt assessment rules, making broker guidance crucial.
Hung said while the low deposit is attractive, buyers need to factor in additional costs and carefully assess their financial capacity, including mortgage repayments and potential interest rate changes.
The duo then moves on to the impact of the scheme, predicting it will increase competition for properties under the cap, driving prices higher and creating a fast-moving market.
