In a revolutionary policy effective October 1, 2025 onwards, the Australian Government is allowing eligible first-home buyers in Australia to buy with just 5% deposit. The government has announced the expansion of the First Home Guarantee, previously known as the First Home Loan Deposit Scheme (FHLDS).
Do you think it’s just another government scheme? No, it’s truly revolutionary and will give you a direct ticket to home ownership. It presents an incredible opportunity for first-home buyers in Melbourne, Perth, Sydney, Brisbane, Hobart, Adelaide, and all over regional Australia.
For Australia’s developing cities, this scheme will be more than transformative. The benefit is that property prices across some of the most expensive Australian cities that previously seemed unreachable have now come within grasp. Regional buyers will have their own advantages.
To know property price caps by city, talk to us!
What is the First Home Guarantee 2025?
It’s a government-backed scheme designed specifically to knock off the biggest barrier discouraging Australians from buying their first home. The barrier is its requirement for deposits of at least 20% of the property price to avoid LIM (Loan Mortgage Insurance).
In this backdrop, the First Home Guarantee 2025 is significantly beneficial for first-home buyers in Melbourne, Sydney and all over Australia, given the rocketing property prices here.
- Instead of the traditional deposit, i.e., 20%, you can secure your first home with just 5% of a deposit.
- The Government Guarantees to cover the risk of up to 15% of the loan, asking lenders to approve the loans.
- You can save thousands on LMI costs immediately because the government covers it through the First Home Guarantee Scheme.
- Strong backing by the government brings down the risk; you can gain direct access to a competitive interest rate, as normally, the low-deposit loans come with relatively high interest rates.
What’s New in this 2025 Expansion?
The government received feedback on FHLDS over the years and revisited it for the better. Here’s what will be changed October 2025 onwards –
- More buying opportunities all over Australia
- Broder eligibility
- No income threshold
- Increased property price threshold
- Faster processing times
- Year-round availability
- Buying together made possible (siblings, relatives, friends, couples, singles, etc.)
- More practical and flexible income requirements
- Strong support for a variety of employment types
- Higher price caps, especially in expensive cities like Melbourne and Sydney
- Stronger support for first-home buyers in regional Australia (given the increasing importance of regional markets)
Who Can Apply?
Only those individuals can qualify for a 5% deposit home loan under the First Home Guarantee 2025 who –
- Have permanent residency or Australian citizenship
- Are buying their first property in Australia
- Aren’t an investor but a genuine home buyer
- Can purchase within location-wise price caps
Top Advantages of Choosing VOXFIN for Your First Home Guarantee Application
- Access to Australia’s leading 40+ participating lenders
- Step-by-step guidance from start to settlement
- Guidance on auction, property location and property price negotiation
- Guidance on genuine savings, stamp duty, and other fees or charges
- Faster processing than usual
- Perfect knowledge of which lenders are relevant and have spots available
- Deep expertise in no LMI home loans andfirst-home buyer loans
- Specialists in handling complex situations
- Pre-approval within 24 hours in most cases
- Priority to time-sensitive applications
- No upfront fees, no hidden charges
- Application lodgement and tracking
- Prompt assistance with document preparation
- Coordination during settlement
- Ongoing support
The Hidden Advantages Beyond the Deposit
There are some solid benefits of the First Home Guarantee 2025 that many people fail to realise.
Faster Market Entry
Getting into the market sooner means building equity sooner. Thus, with each month you delay your decision about the new home, comes one more month of rent payments.
Improved Borrowing Power
No LMI (to pay upfront) lets you potentially borrow more. It also allows to buy your first property in a better location.
Competitive Interest Rates
Compared to standard high-LVR loans, government backing often gives you access to better rates.
Flexibility in Future
Once you build 20% equity, you gain measurable market exposure to be able to refinance normally in future.
VOXFIN Experts Address Some of the Most Common Concerns
1. Is 5% deposit risky?
With stable employment and proper budgeting, it’s not risky. Renting for an uncertain period amid a potential price rise is riskier.
2. Will I get approved?
With VOXFIN, the answer is yes. We understand what exactly lenders want to see. Our expertise improves your chances dramatically.
3. What if property prices fall?
Well, this risk always exists, irrespective of your deposit size. The main difference is that here, you’re building equity instead of paying rent.
4. Can I use the scheme for apartments?
Yes, houses, townhouses, apartments, and individual units – all qualify for the scheme, provided the price caps are met.
5. What if I’m self-employed?
VOXFIN has been a specialist in complex applications. If you’re self-employed, we help you qualify with proper documentation.
6. Can I buy with my siblings or friends?
Why not? You can! There are specific arrangements regarding this in the 2025 expansion. Read properly to understand.
7. What are the income limits for this scheme in 2025?
For singles, it’s up to $125,000, whereas for joint applicants, it’s up to $200,000 combined (both annually). These limits ensure that only those who are genuinely in need will get to reap the scheme’s benefits.
8. What happens if I want to sell later?
That’s not even a problem. You can sell it normally because any government guarantee is automatically discharged at settlement.
5 Steps to Home Ownership with Us
Step 1 – Check Your Eligibility (Instant)
VOXFIN helps you with the free eligibility assessment.
Step 2 – Get Pre-Approved (Within 24-48 hours)
You can have conditional approval within the span of two days.
Step 3 – Start House Hunting (Immediate)
With exact knowledge of what you can afford, you can now hunt for your house with confidence.
Step 4 – Secure Your Guarantee
VOXFIN helps you with immediate application lodging and tracking its status till approval.
Step 5 – Move in (Within 30-60 days)
We accompany you till your home ownership journey completes – from the accepted offer to keys in your hand.
With Australia’s property market witnessing constantly rising prices and a severe rental crisis, the waiting period for your first home becomes not only frustrating but also expensive. Given that, we insist that you reap this First Home Guarantee 2025 now, as the places are limited.
Limited Places! Hurry up!
If you decide to wait till another offer is announced, here’s what the delay costs you –
- Potential property price increases
- Lost opportunity to start building your wealth
- Rent payments that build someone else’s equity
VOXFIN, with years of experience, expertise, and lender relationships, has been turning the home ownership dreams of thousands into reality. Now, it’s your turn, and the real question isn’t whether you’re using our First Home Guarantee 2025; the question is, can you afford not to use it?
Your dream home is closer than you can think.
Don’t let one more month of rent payment slip by. Simply stop paying someone else’s mortgage.
Contact VOXFIN now and get one step closer to your own home. We’re Australia’s trusted mortgage broker for first-home buyers!
Call at 03 7065 2000
Enquire online at www.voxfin.com.au
Live chat available for immediate questions
