With the recent rate cuts, heading into spring looks to give the buyers a little more confidence to enter the property market.
The Government First Home Buyer Schemes are making the plunge a little easier for first-time buyers.
First Home Buyers Guarantee Scheme
From 1 October 2025, the government is introducing the First Home Guarantee Scheme. This was meant to be brought in next year, but it has been fast tracked so first-time buyers can get into the market sooner.
Also, in line with the increasing home prices, the price caps have been lifted.
Previously, Victoria’s Capital City and regional areas housing prices to qualify for the scheme were capped at $800,000. From 1 October 2025, this amount will rise to $950,000.
In other areas of Victoria, the price cap remains at $650,000.
The Scheme requires the buyer to have saved a 5% deposit. The government will then guarantee a portion of the first home-buyers loan so that they will not be required to pay Lender’s Mortgage Insurance saving thousands of dollars.
Who is eligible and what are the changes:
- All Australian first home buyers who have saved a 5% deposit can apply.
- First home buyers with higher incomes can access the Scheme as there are no income gaps.
- The property price caps will increase to help more buyers find a property.
- Regional areas: Regional First Home Buyers Guarantee will be replaced by the First Home Guarantee.
Over 30 lenders across Australia can help access the scheme.
Victoria Homebuyer Fund shared equity scheme
We put out a blog for this scheme last year, when it was introduced back in November 2024.
You will need to have saved 5% deposit of the purchase price for your home to qualify.
The government could then financially contribute up to 25% of the purchase price in exchange for the same share in your property.
How it works
If the government contributes 25% to the purchase price, they will own a 25% share of the property.
And the buyer contributes the remaining 75% to the purchase price – the buyer will own the remaining 75% share of the property.
The buyer will need to cover any additional costs such as stamp duty, transfer and conveyancing fees.
Participants are required to buy back the government’s share of their property over time, by lump sum payments, refinancing or upon the sale of the property. The government does not charge interest on their investment but will share in any property value gains or losses proportionate to its share of the property.
Payments must be for a minimum of $10,000 at a time and must reduce the government’s equity by a minimum of 5%. (eg – reducing the government’s interest from 25% to 20%.