For many Australians, saving for a deposit is the biggest hurdle to buying a first home. From 1 October 2025, major changes to the First Home Buyer Guarantee (FHG) will make it easier for more people — including single parents — to purchase property with a smaller deposit and without paying costly lender’s mortgage insurance (LMI).
Buy a Home with Just a 5% Deposit
The FHG allows eligible buyers to enter the market with as little as a 5% deposit, with the government guaranteeing up to 15% of the property’s value. This means buyers can borrow up to 95% of the purchase price and avoid LMI.
For single parents and single legal guardians, the Family Home Guarantee is even more generous, allowing purchases with just a 2% deposit, with the government guaranteeing up to 18%.
Who Can Apply?
To qualify, applicants must:
- Be an Australian citizen or permanent resident
- Be at least 18 years old
- Intend to live in the property (not invest)
- Not have owned property in Australia in the last 10 years
- Provide a minimum 5% deposit (or 2% for single parents/guardians)
What’s New from 1 October 2025?
The government’s reforms significantly expand access:
- No income caps – higher earners now eligible (previously $125k single, $200k joint)
- Higher property price caps – lifted by an average of $150,000 nationwide (Sydney up nearly 70%)
- No annual place limits – previously capped at 35,000 buyers
- Regional access simplified – regional scheme now merged into the FHG
Why This Matters
These changes could save first home buyers years of deposit saving. For example:
- Sydney – Property price cap increased by $600,000, cutting saving time by up to 5 years
- Brisbane & Adelaide – Caps lifted by $300,000, saving around 4 years
- Regional centres – No place limits mean faster access in areas like the Lake Macquarie, Newcastle, and our region – the Central Coast.
For single parents, the Family Home Guarantee remains the lowest-barrier pathway to homeownership, with only a 2% deposit required.
Why Act Quickly?
With lower deposit requirements and higher property caps, more buyers are expected to enter the market. That means greater competition and faster-selling properties. Acting early could be the difference between securing a first home and missing out.
How First National Real Estate Helps
At First National Real Estate, we simplify the process for first home buyers:
✔ Guidance on eligibility and government schemes
✔ Access to homes across cities and regional centres
✔ Local expertise to navigate the market
✔ Negotiation support to secure the best price
✔ Exclusive off-market opportunities
Take the First Step Towards Homeownership
With the First Home Buyer Guarantee 2025, saving for a deposit no longer has to take a decade. Whether you’re a first-time buyer with a 5% deposit or a single parent accessing the 2% pathway, 2025 is shaping up to be the best chance in years to buy your first home.
Contact us today and see how close you are to owning your first home!