🏠 Struggling to Save a 20% Deposit? Here’s How the 5% Home Guarantee Scheme Can Help
Saving a 20% deposit for a home in Sydney can feel like chasing a unicorn. The rising cost of living, stagnant wages, and soaring property prices make reaching that milestone more difficult than ever — and you’re definitely not alone.
According to PEXA, it now takes some buyers more than a decade to save a standard deposit. But what if you didn’t have to wait that long?
💡 Enter the Home Guarantee Scheme: A Fast Track to Home Ownership
As of 1 July, the Federal Government has unlocked 50,000 new places in the Home Guarantee Scheme (HGS), designed to help eligible buyers purchase a home with just a 5% deposit — without paying lenders mortgage insurance (LMI).
That’s a potential saving of tens of thousands of dollars, and a chance to get into the market much sooner than expected.
🧠 How Does the Home Guarantee Scheme Work?
Rather than giving you cash, the government guarantees your home loan — helping you avoid the costly LMI typically required when your deposit is under 20%.
🧾 Key Benefits:
- Only 5% deposit required
- Zero LMI costs (savings range from $10,000 to $30,000+ depending on property value)
- Faster entry into the property market
- Available for new builds, house-and-land packages, off-the-plan apartments & established homes
🔗 Want to explore more pathways to your first home? Check out our Home Loan Pre-Approval Process blog.
🚀 Why Timing Matters: Home Prices Are on the Rise
According to CoreLogic, property prices are projected to climb by 5.8% over the next year. Getting in sooner — even with a smaller deposit — can mean securing a home before it becomes less affordable.
If you’re tired of waiting, HGS could be your fast lane to property ownership.
🗓️ Limited Spots, Big Opportunities: What’s Available Now?
The newly released 50,000 places are split into three categories:
| Guarantee Type | Number of Places | Who It’s For |
|---|---|---|
| First Home Guarantee | 35,000 | First-time buyers in metro or regional areas |
| Regional First Home Buyer Guarantee | 10,000 | Buyers purchasing in eligible regional areas |
| Family Home Guarantee | 5,000 | Single parents with dependents |
More than 230,000 buyers have already benefited from the scheme — and spots fill quickly.
🔗 Check current property market insights in our 2025 Property Predictions blog.
📋 Are You Eligible for the Scheme?
Eligibility criteria include:
- Income caps: $125,000 for singles, or $200,000 combined for couples (including friends or siblings buying together)
- Property price caps (varies by state and region)
- Must be Australian citizens or permanent residents
- Must be buying your first home or be a single parent applying for the Family Guarantee
🗣️ Unsure if you qualify? Contact our Sydney mortgage team and we’ll assess your eligibility straight away.
🧭 What’s Coming: 2026 Expansion on the Horizon
Can’t qualify now? The Albanese Government has proposed removing income caps from the scheme starting in 2026, broadening access for many aspiring homeowners.
📞 Take Action While Places Last
HGS places can fill up fast — especially with the market heating up. If you want to avoid missing out and buy your first home sooner, don’t wait.
🟢 Reach out to CBM Mortgages for:
- Fast eligibility checks
- Access to competitive lenders
- A guided path to home ownership with less stress
👉 Find out if you’re eligible — let’s make your property dreams real.
🔐 Disclaimer
This article is intended to provide general information and does not constitute financial or tax advice. Always consult a licensed professional before making decisions based on your personal circumstances.
Written by Craig McDonald 14/07/2025
