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The Albanese government’s expanded 5% deposit scheme for first home buyers came into effect on October 1, 2025.
The First Home Buyer Guarantee program enables eligible buyers to purchase a home with a 5% deposit, with the federal government guaranteeing the remaining 15%.
This means buyers avoid paying Lenders Mortgage Insurance (LMI), save $10,000–$30,000 depending on the home, and can get into the market much faster.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.