From October 1st, the Albanese government will expand its housing guarantee, allowing all first home buyers to put down a deposit of 5 percent to purchase a property.

The initial expansion of the guarantee, which was scheduled to roll out on January 1st, 2026, has been brought forward by three months in an effort to help eligible first home buyers purchase a home sooner.

Compared to the usual 20 percent deposit needed to purchase a property, the government provides the remaining 15 percent of the deposit, protecting buyers from the lender’s mortgage insurance penalty.

This now means that purchasing a median home in Australia ($820,000) will require only a $41,000 deposit, compared to a $164,000 one, saving both money and time in the process of buying a property.

The expansion will also raise price caps on homes and scrap income limits. In Melbourne, the cap will now increase from $800,000 to $950,000.

Prime Minister Anthony Albanese said he wants to help young people and first home buyers “achieve the dream of home ownership sooner”.

“Bringing the start date of our 5 per cent deposit scheme forward will do just that,” he said.

Minister for Housing, Clare O’Neil added that it’s unfair that young Australians have been “locked out” of the housing market for so long.

“Yesterday we announced reforms to unlock tens of thousands of new homes and today we’re announcing changes to help tens of thousands of first home buyers get into home ownership,” she said.

The scheme which has already helped 150,000 first home buyers is part of Labor’s plan to tackle Australia’s housing crisis.

Photo by RDNE Stock project, found HERE, and is used under a creative commons licence. This image has not been modified.