Big News for First‑Home Buyers: New 5% Deposit Scheme Lands 1 October 2025

Picture this: It’s a Sunday morning, the light dances off new hardwood floors, and a steaming cup of coffee waits on your very own kitchen bench—because you’ve finally stepped across the threshold into your first home. Too good to be true? Not anymore. From 1 October 2025, the Australian Government is fast‑tracking the First Home Guarantee, letting you buy your first property with just a 5% deposit, no Lenders Mortgage Insurance, and no income or place caps.

1. What’s Changing—And Why It Matters

Starting 1 October 2025, the once limited-access First Home Guarantee expands in three major ways:

Open to all first-time buyers, with no income caps or restricted places .
Higher property price caps tailored to location: up to $1.5 million in Sydney, $950,000 in Melbourne, $1 million in Brisbane, and adjusted regional limits .
5% deposit requirement with government guarantee of up to 15% of the loan, so no costly Lenders Mortgage Insurance (LMI). This saves first-home buyers tens of thousands of dollars and cuts years off deposit saving time .

2. Real-World Impact: What It Means for You in Adelaide and Beyond

For Adelaide buyers, this means the dream could become reality faster than you think. Imagine:

A $600,000 home—your deposit needed? Just $30,000, not $120,000. You could save 6+ years off that deposit-target journey and avoid thousands in LMI.
Across Australia, the median price is $844,000, meaning a 5% deposit equals around $42,200—the last time that covered a 20% deposit was 2002.
In Brisbane, a $1 million home is possible with a $50,000 deposit, saving years of rent money and boosting your equity early.

Simply put: you get into your home faster, with more cash in your pocket from day one—thanks to the First Home Guarantee.

3. Benefits That Spark Joy (and Sense!)

A. Speed to Ownership

No more waiting years to save a 20% deposit. At just 5%, you’re weeks or months away from entering the property market.

B. Big Savings

Say goodbye to thousands of dollars in LMI. The government guarantee does the heavy lifting for you.

C. Smarter, Safer Options

With expanded price caps and zero income limits, many more Adelaide buyers can step forward with confidence.

D. Community Momentum

By bringing home ownership within reach, you become part of a vibrant community that’s building equity, stability, and belonging now—not later.

4. A Quick Look: What Else Is in the Home Guarantee Scheme?

Beyond the core First Home Guarantee, the Home Guarantee Scheme includes:

Regional First Home Buyer Guarantee — aimed at buyers outside metro areas.
Family Home Guarantee — designed for single parents or guardians, offering as little as 2% deposit .
In 2025–26, there are 50,000 new places across the scheme: 35,000 for First Home Guarantee, 10,000 regional, and 5,000 family.
From 1 July 2025, another 20,000 places were added to the First Home, Regional, and Family streams.

This means there’s real capacity and momentum behind the support you need.

5. Words of Caution—and Confidence

Be mindful of interest: 95% loans often come with slightly higher rates. Planning to refinance once you have more equity can set you up for long-term success .
Act early: Many are waiting to hop in—some experts warn this could drive prices up by 8–15% in early 2026 .
Know your numbers: Even with a lower deposit, remember the extra costs—stamp duty, legal fees, and home ownership expenses.

But with smart planning, professional guidance, and a clear strategy, you can step into home ownership with your eyes—and future—wide open.

6. Find Your Path with Lendology

Here in Adelaide, at Lendology, we stand ready to guide you home—with clarity, trust, and a touch of joy. Here’s how:

Tailored guidance: Help you understand if the First Home Guarantee fits your needs—and how to access it.
Fast-prep application support: We partner with participating lenders and resource you with the forms, timelines, and intel you need to act.
Savings strategy: Help cushion for other costs like stamp duty and legal fees, so you’re ready before the big day.
Forward planning: Map your refinance options for when equity grows, so you’re always steering your mortgage.

7. Take the Leap—Here’s Your 5-Step Guide

Check your eligibility: No age or income caps—check if you’re a first-home buyer (haven’t owned property in 10+ years) and plan to live in the home.
Estimate the price cap: Use postcode tools or talk to your lender to confirm Adelaide-specific limits.
Book a chat with us: We’ll connect you with a participating lender, walk you through your deposit, and lock in your application.
Act early: With no caps and high demand expected, being ready on 1 October could mean the difference.
Plan ahead: Once in the home, let’s craft your roadmap—equity, refinance, and your next dream move.

Final Thoughts: Your Home, Your Time

This isn’t just a policy change—it’s a powerful opportunity. The First Home Guarantee, launching 1 October 2025, is your chance to step onto the property ladder with energy, ease, and inspiration. You’re not just buying a house—you’re building your future.

Adelaide dreams are becoming real homes. Let’s make sure yours is next.