Low deposit? 50,000 Home Guarantee Scheme Places Now Available

Saving up a 20% deposit can feel like an impossible mission. But there’s good news if you’re keen to get into the property market sooner. As of 1 July, 50,000 new places have opened up in the popular 5% deposit Home Guarantee Scheme. Here’s what you need to know about claiming one.

If you’ve been chipping away at that 20% deposit goal and wondering if you’ll ever get there, you’re in good company.

According to property exchange platform PEXA, it can now take buyers more than ten years to save for a deposit.

Who wants to wait that long?

That’s where the Home Guarantee Scheme (HGS) steps in. It helps eligible first home buyers secure a property with as little as a 5% deposit.

As of 1 July, an additional 50,000 HGS places have been released.

How does the 5% deposit Home Guarantee Scheme work?

The scheme doesn’t hand you a cash grant. Instead, the federal government guarantees part of your loan.

This means you can buy with just a 5% deposit and avoid paying any lender's mortgage insurance (LMI).

That’s a big deal because LMI costs can easily run into tens of thousands of dollars.

The real benefit? It’s much quicker to save 5% than 20%, and time is of the essence.

CoreLogic is tipping house prices to climb another 5.8% over the next year.

Why these new places matter

It’s no surprise that more than 230,000 first home buyers have already used the HGS to break into the market.

But there’s a catch – places are capped each year.

That’s why the release of 50,000 new spots on 1 July is such welcome news.

Here’s how those places break down:

• 35,000 for the First Home Guarantee
  
  
• 10,000 for the Regional First Home Buyer Guarantee
  
  
• 5,000 for the Family Home Guarantee (supporting single parents)

Eligibility at a glance

The HGS isn’t open to everyone, so you’ll need to check that you qualify.

Not sure? Reach out. We can help you confirm your eligibility quickly.



But here’s a simple guide:

• Singles need to earn $125,000 or less.
  
• Couples (including friends or siblings buying together) can earn up to $200,000 combined.

If you’re earning above these limits, don’t give up. The Albanese Government has pledged to remove income caps altogether in 2026.

There are also property price caps that depend on where you’re buying.

But you’ll have plenty of choice. You can buy new or existing properties, a house-and-land package, or even an off-the-plan apartment.

Ready to see if you’re eligible?

These spots tend to fill up fast.

If you want the chance to buy with just a 5% deposit and skip LMI entirely, now is the time to act.

Osinski Finance makes it simple to understand your options and navigate the Home Guarantee Scheme. As your local finance partner, we support first home purchases, property investment, and loan refinancing.

Get in touch today to find out if you can claim one of these limited places and take that big step toward your own home.

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