Check out the updates on the First Home Guarantee scheme and learn the benefits.
If saving for your first home deposit feels more like a distant dream than an achievable goal in today’s property market, you’re not imagining it.
Data from the Australian Bureau of Statistics (ABS) shows the average home in Australia has recently hit $1 million (June, 2025). Meanwhile, housing affordability reached record lows from both a mortgage and rental paying perspective.
This means young Australians are expected to pay more rent, and at the same time, save for a massive deposit if they want to buy their own property.
But the government is aware this is a losing battle (unless you’re lucky to have Bank of Mum and Dad on your side). That’s why there are government schemes specifically designed to help first home buyers get onto the property ladder sooner…
In this article we’ll outline all the current and upcoming government cheat codes for breaking into the property market, even if you haven’t saved that 20% deposit yet.
One major property myth is needing a 20% deposit to buy a house. You can actually get into the property market with less, however, having a smaller deposit usually incurs a fee called Lenders Mortgage Insurance (LMI).
In short, this is insurance paid to your lender in case you default on your loan and can’t meet your monthly repayments. If you want to understand the ins and outs of how LMI works, you can check out our Academy course on it here.
But in 2020 the government introduced the First Home Guarantee Scheme (FHGS) which essentially allowed Australians to buy their first home with as little as 5% deposit, without having to pay the extra LMI fee because the government acts as a guarantee for you.
Previously, there were some eligibility restrictions but those will be changing as of the 1st of October this year to allow even more people to participate in the FHGS.
Other FHGS eligibility criteria that will remain the same:
If you’ve got your eyes set on being a property owner, it might not be as out of reach as you originally thought. So perhaps it’s time to lock in, and research your options with the new and improved FHGS!
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