There’s More Than One Way In:

A Guide for First-Time Buyers &

Parents who want to help

Whether you’re a parent wanting to give your children a head start, or a First Home Buyer or you’re someone looking to re-enter the property market after some time away, it’s natural to feel overwhelmed by deposit hurdles, rising costs, and unclear options.

The good news? You may have more support available than you think.

From government-backed deposit schemes to lender options that allow parents to assist without handing over cash, this guide walks you through the practical paths that can help make home ownership more achievable—sooner than expected.

Let’s explore what’s possible

1. Government Home Guarantee Schemes – Buy Sooner with a Smaller Deposit

You may have heard of the First Home Guarantee or the Family Home Guarantee, but did you know that some people who’ve owned a property before may still be eligible?

Important note: This is not to be confused with the Home Equity Scheme (previously known as the Shared Equity Scheme), where the government buys a portion of the property with you. That is a different scheme and not the one we’re discussing here.

The Home Guarantee Schemes offer government-backed loan guarantees, helping eligible buyers purchase a home with a smaller deposit and without needing to pay Lenders Mortgage Insurance (LMI).

These include:

  • First Home Guarantee – Buy with as little as 5% deposit, no LMI

  • Family Home Guarantee – For eligible single parents with at least one dependent, available with just 2% deposit, no LMI

And here’s something many don’t realise:
If the purchaser has owned a property before—but it was more than 10 years ago—they may still be eligible, provided they meet other criteria and have never received the First Home Owner Grant.

All schemes are subject to scheme criteria, lender approval, and until October 2025 limited places.

Learn more or check eligibility here

Major Changes Coming from 1 October 2025

From 1 October 2025, the Australian Government is expanding the Home Guarantee Scheme in a big way:

  • Unlimited places – All first home buyers who meet eligibility can apply (no caps).

  • No income limits – Higher earners will also be able to access the scheme.

  • Higher property price caps – Reflecting today’s housing market.

  • Simpler regional access – The Regional First Home Buyer Guarantee will be rolled into the main First Home Guarantee.

For example:

  • In Sydney and regional NSW centres, the cap will rise from $900,000 to $1.5M.

  • In Melbourne and Geelong, the cap will rise from $800,000 to $950,000.

  • In Brisbane, Gold Coast and Sunshine Coast, the cap will rise from $700,000 to $1M.

This means more buyers in more areas will finally be able to qualify.

Note: These changes are not effective until 1 October 2025. The Home Guarantee Scheme is still available today under the current eligibility and price caps.

2. State-Based First Home Buyer Incentives

In addition to federal guarantees, each state offers its own first home buyer support—including grants, concessions, and exemptions to reduce upfront costs.

For example, in Victoria:

  • Stamp duty exemption for purchases up to $600,000

  • Stamp duty concessions for purchases between $600,000 and $750,000

  • $10,000 First Home Owner Grant for new builds in regional Victoria

These programs can make a major difference, especially when combined with the Home Guarantee Schemes. Each state is different—so it’s important to check what applies to your location.    Find out More about State Based Incentives Here

3. Family Guarantee (Also Known as Family Pledge or Security Guarantee)

If you’re a parent or close family member who wants to help, but would rather avoid gifting cash, a Family Guarantee could be a great solution.

This allows you to use the equity in your own property—whether it’s your home or an investment property—as a limited security guarantee to support your child’s loan.

How it works:

  • The lender places a second mortgage over your property, only covering the shortfall needed to reduce the loan-to-value ratio

  • This helps your child avoid paying LMI and may reduces the deposit they need

  • Over time, as their loan is paid down or their property increases in value, they may be able to refinance or order a valuation to release your property from the loan

  • IMPORTANT:  If the borrower defaults on the loan and if the home is sold at a loss, the guarantor may be liable for any shortfall.  This is why it’s essential to get the structure right, understand the risks, and only proceed after receiving all the facts.

Important to Know

  • Not all lenders offer these options, and those that do have different requirements

  • For Family Pledge / Family Guarantee they must have sufficient equity and meet pledging criteria

  • The purchaser must meet lending criteria, demonstrate stable income, servicing and meet the credit profile of the lender.

  • It’s important to note that credit score, income, and servicing capacity all still matter.  Its not just about deposit and equity.

  • Lenders who offer these options require good credit history and a good credit score.

We’re seeing more young buyers impacted by Buy Now, Pay Later services. These facilities may seem convenient, but they often harm your credit score—especially if used frequently or missed payments occur. If you’re thinking about buying property, it’s best to avoid using BNPL services for small purchases, as it could prevent you from qualifying when you’re otherwise ready.

Give us a call 1300 652 842, jump on live chat, or send us an email.

We’re here to help when you’re ready.   Contact Us to Know More