It's a government-backed scheme allowing eligible first home buyers to purchase with just a 5 % deposit, without paying Lenders Mortgage Insurance (LMI).
Housing Australia provides up to a 15 % guarantee to the lender, reducing upfront costs.
Applies to new or existing homes.
Buyers must be Australian citizens or permanent residents who haven't owned property in the past 10 years.
From 1 October, joint applicants don’t need to be married or de facto - friends or family members, can apply together.
✅ More eligible buyers: Income limits have been a barrier for many, particularly in dual-income households. From October 2025, these clients could now qualify.
✅ More suburbs in reach: Previously excluded postcodes are now in play, opening the door to buyers in higher-demand or high-growth areas.
✅ Faster path to property: With just a 5 % deposit needed (and no LMI), many buyers can enter the market sooner.
⚠️ Increased competition: Government modelling suggests the scheme may add up to 0.5 % to property prices over six years. In tight markets, competition may heat up.
Review income/place filters from your eligibility assessments.
Add the updated property price caps to pre-approval templates.
Check your CRM/marketing automation database and lead filters.
Revisit declined or paused applications from the past 12–24 months.
Clients who were over the income threshold or lived in excluded areas may now qualify.
Make sure everyone from admin to loan writers understands what’s changing.
Be ready to guide clients through competitive offers, valuations, and settlement timelines.
Use this as a value-add, educational moment “This scheme just opened the door for you.”
Q: Does the scheme still waive LMI with a 5 % deposit?
Yes — LMI is waived under the scheme, as the Government guarantees up to 15 % of the loan.
Q: Will this definitely push prices up?
Modelling suggests a modest increase (around 0.5 % over six years), but actual impact will vary based on market conditions and state-based demand/supply.
Q: Can friends or siblings apply together?
Yes — from October 2025, joint applicants don’t need to be spouses or de facto. The scheme supports joint applications between friends, siblings, and others.
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