Owning your first home in Australia can feel out of reach when you’re told you need a 20% deposit. For many, this means saving for years while property prices continue to rise. That’s where the First Home Guarantee (FHG) comes in.

From 1 October 2025, the scheme has been expanded to make home ownership more accessible for first-home buyers across the country. With just a 5% deposit and no Lenders’ Mortgage Insurance (LMI), you can enter the market faster and save tens of thousands of dollars.

At AMA Accountants, we specialise in both accounting and mortgage services. We’ve helped hundreds of clients navigate the property market, secure finance, and claim the benefits of government schemes like the FHG. Whether you’re in Adelaide, Sydney, Melbourne, Brisbane, Perth, or anywhere in Australia, our team is here to help you buy your first home with confidence.

What is the First Home Guarantee (FHG)?

The First Home Guarantee, previously called the First Home Loan Deposit Scheme (FHLDS), is a federal government initiative that supports Australians buying their first home.

Normally, when you have a deposit of less than 20%, lenders require you to pay Lenders’ Mortgage Insurance (LMI) – an additional cost that can run into the tens of thousands. The FHG changes this by having the Government act as a guarantor for up to 15% of the property’s value.

This means you can:

• Buy a property with just 5% deposit. 
• Avoid paying expensive LMI. 
• Enter the property market sooner. 

Example: Let’s say you’re purchasing a property in Brisbane valued at $800,000. Without the scheme, you’d need $160,000 (20%) to avoid LMI. With the FHG, you only need $40,000 (5%) – and you could save $25,000–$30,000 in LMI fees.

Key Changes to the First Home Guarantee (from 1 October 2025)

The October 2025 expansion makes the scheme the most inclusive it has ever been. Here’s what’s new:

• No more income limits – previously capped at $125,000 (singles) or $200,000 (couples). Now open to all. 
• No more place limits – every eligible Australian can apply. 
• Higher property price caps – now up to $1.5 million in Sydney and $1 million in Melbourne & Brisbane. 
• Regional scheme simplified – the separate Regional First Home Guarantee has been rolled into one streamlined program. 
• Joint ownership expanded – friends, siblings, and family members (not just couples) can now apply together. 

This expansion is a huge step in making home ownership possible for more Australians.

 

Who is Eligible for the First Home Guarantee?

To access the scheme, you must meet certain requirements:

1. First-time buyer – You must not have owned property in Australia in the last 10 years. 
2. Citizenship or Residency – You must be an Australian citizen or permanent resident. 
3. Age – Applicants must be 18 years or older. 
4. Occupancy – The home must be your primary residence, and you must move in within 6 months of settlement. 
5. Application type – You can apply as an individual or jointly with a partner, sibling, or friend. 

 

Property Price Caps (Effective 1 October 2025)

Here’s how much you can buy for under the scheme, and what a 5% deposit would look like:

Location	New Price Cap	5% Deposit Required
Sydney & NSW regional centres	$1,500,000	$75,000
Melbourne & Geelong	$950,000	$47,500
Brisbane, Gold Coast & Sunshine Coast	$1,000,000	$50,000
Adelaide	$900,000	$45,000
Perth	$850,000	$42,500
Hobart	$700,000	$35,000
ACT	$1,000,000	$50,000
Regional QLD	$700,000	$35,000
Regional SA	$500,000	$25,000

This means first-home buyers can now enter the property market in major cities and regional centres with a much smaller deposit than ever before.

 

Benefits of the First Home Guarantee

The scheme offers life-changing advantages for first-time buyers:

• Buy your first home sooner – no need to wait years to save a 20% deposit. 
• Save thousands on LMI – keep that money in your pocket or put it toward your loan. 
• Access higher-value properties – thanks to increased price caps. 
• Flexibility for joint applications – buy with your partner, sibling, or friend. 
• Build equity faster – by entering the market earlier, you start building wealth sooner. 

 

How to Apply for the First Home Guarantee

Applying for the FHG is straightforward, especially when you have experts by your side:

1. Check your eligibility – our team will review your situation and confirm you qualify. 
2. Find the right lender – not all banks participate, but we work with lenders such as NAB, Westpac, and Commonwealth Bank, plus many more. 
3. Get pre-approval – so you can start house hunting with confidence. 
4. Submit your application – we’ll guide you through the process, handle the paperwork, and liaise with the lender. 

 

Why Work with AMA Accountants?

At AMA Accountants, we’re more than accountants – we’re your end-to-end financial and mortgage partner.

Here’s why first-home buyers trust us:

• Holistic Support – We handle your tax planning, budgeting, and home loan strategy together. 
• Mortgage Expertise – As certified mortgage brokers, we connect you with leading banks and lenders. 
• Save Time & Stress – We manage the paperwork so you can focus on finding your dream home. 
• Tailored Guidance – Every buyer’s journey is unique, so we create a personalised plan that suits your goals. 
• Australia-Wide Service – Based in Adelaide, but helping first-home buyers in Sydney, Melbourne, Brisbane, Perth, Tasmania, and beyond. 

 

First Home Guarantee – Frequently Asked Questions

1. Can non-residents apply?
   No, the scheme is only open to Australian citizens and permanent residents.
2. Can I use the FHG for an investment property?
   No, the property must be owner-occupied.
3. Do I need to pay the Government back?
   No, the Government acts as guarantor but does not lend you money or charge you fees.
4. Can I combine this with other schemes?
   Yes! You may also be eligible for the First Home Owner Grant (FHOG) or state stamp duty concessions.

 

Start Your First Home Journey Today

The First Home Guarantee 2025 expansion is one of the biggest opportunities for first-home buyers in years. With no income limits, higher property caps, and unlimited places, there’s never been a better time to step onto the property ladder.

At AMA Accountants, we’ll help you:
✔ Secure your mortgage under the First Home Guarantee.
✔ Access all available government incentives.
✔ Structure your finances for long-term success.

 Book a free consultation today and let AMA Accountants help you buy your first home with just a 5% deposit.

AMA Accountants – Mortgage & Accounting Specialists for First-Home Buyers Across Australia.