50,000 new places in the Home Guarantee Scheme
If you’re trying to enter the property market, the federal government has just potentially made it a little easier. As of 1 July 2025, another 50,000 places have been made available under the Home Guarantee Scheme for the 2025–26 financial year.
This scheme is designed to help eligible buyers purchase a home with a smaller deposit, by having part of their loan guaranteed by the government. That allows participants to buy a property without needing to pay lenders mortgage insurance (LMI), which can save thousands of dollars.
The 50,000 additional places will be allocated as follows:
35,000 places for the First Home Guarantee – helping eligible first-home buyers purchase a property with as little as 5% deposit.
10,000 places for the Regional First Home Buyer Guarantee – supporting eligible first-home buyers in regional areas.
5,000 places for the Family Home Guarantee – assisting eligible single parents or single legal guardians with a deposit as low as 2%.
Many Australians have already benefited
Housing Australia CEO Nathan Dal Bon said the scheme “continues to play an important role in helping Australians achieve the dream of home ownership” and that it “has already helped over 160,000 people since 2020”.
To be eligible, you’ll need to meet certain criteria, including income caps and property price limits, which vary by location and guarantee type. You must also be an Australian citizen or permanent resident and plan to live in the home.
The new places are expected to be popular, so it’s a good idea to get prepared if you think you might qualify. We can talk you through getting your finances in order and walk you through the application process.
Licensing statement: Rayne Finance ABN [70 605 100 838] is authorised under LMG Broker Services Pty Ltd Australian Credit Licence 517192. Disclaimer: (1) As with any financial scenario there are risks involved. This information provides an overview or summary only and it should not be considered a comprehensive analysis. You should, before acting in reliance upon this information, seek independent professional lending or taxation advice as appropriate and specific to your objectives, financial circumstances or needs. This publication is provided on the terms and understanding that: (2) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any error in or omission from this publication. (3) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors, expressly disclaim all and any liability and responsibility to the maximum extent permitted by the law to any person, whether a purchaser or reader of this publication or not, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication.
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What is the cash rate and how could it impact me?
The cash rate can have a significant impact on home loan repayments. When interest rates are low, it can make it easier for people to buy a home or refinance their existing mortgage, as their repayments will be lower. However, when interest rates rise, home loan repayments can increase, which can be a burden for some homeowners.
What is lenders mortgage insurance? (LMI)
Lenders Mortgage Insurance, or LMI, is designed to protect the lender, not the borrower, in case the borrower defaults on their loan (i.e. can no longer make their repayments). If the borrower defaults, the lender can repossess the property, however there’s a risk that the property price could have fallen and the lender could suffer a loss. LMI covers this risk.
What is interest only?
Home loan repayments are generally made up of two components: the principal (your loan balance) and the interest (the amount you’re charged on the outstanding loan balance).