Breaking: Major change to 5% deposit scheme could save you thousands.

If you’ve been dreaming of owning your first home, there’s big news that could make it easier than ever to take that next step.

Starting 1 October, the government is expanding the Home Guarantee Scheme, allowing eligible buyers to purchase a property with just a 5% deposit, and no lenders mortgage insurance (LMI).

That’s a potential saving of tens of thousands of dollars.

What’s changing?

• No income limits - anyone buying their first home can apply.
• Higher property price caps - for example, in Melbourne, the cap jumps from $800,000 to $950,000.
• No cap on the number of applicants - it’s open to all eligible first home buyers.

Why you should take advantage of this?

Saving for a 20% deposit can take years, especially while paying rent. This scheme could cut years off your savings timeline, helping you stop renting and start owning sooner. Plus, skipping LMI means you keep more money in your pocket, which can go toward furnishing your new home or paying down your loan faster.

What the experts are saying.

Industry leaders expect this to bring more buyers into the market, especially younger Australians and those in regional areas. While increased demand may push prices up, it also means more opportunities if you act smart and move early.

At FinancePath, we’re here to help you understand your options and guide you through the process. If you’ve been holding off on buying your first home, now might be the right time to take the next step.

Ready to chat? Reach out to our team today and let’s explore how this scheme could work for you.