The Extended Home Buyer Guarantee Scheme: What it means for you
From 1 October 2025, the Australian Government has significantly expanded the Home Buyer Guarantee scheme, now branded as the 5% Deposit Scheme. This initiative removes previous restrictions, offering unlimited places, no income caps, and higher property price limits across most states. Eligible first-home buyers can now enter the market with as little as a 5% deposit (or 2% for single parents) and avoid costly Lenders Mortgage Insurance (LMI)—a saving that can amount to tens of thousands of dollars. Property price caps have been lifted to reflect market conditions, with limits now reaching $1.5 million in Sydney, $950,000 in Melbourne, and $1 million in Brisbane and Canberra, making home ownership more achievable in high-demand areas.
Why This Matters for First-Home Buyers
The biggest hurdle for most buyers has always been saving a 20% deposit while juggling rent and living costs. The expanded scheme slashes this barrier, cutting deposit-saving time by up to 1.7 years and reducing upfront costs by around $25,000. By guaranteeing part of the loan, the government enables lenders to approve applications that would otherwise require LMI, helping buyers redirect funds into equity rather than fees. This reform is expected to accelerate market entry for thousands of Australians, especially in competitive metro and regional markets.
Why Review Your Interest Rate Now
Even with government support, interest rates remain a critical factor in affordability. After recent Reserve Bank cuts, variable rates average around 5.2%–5.4%, but differences between lenders can significantly impact repayments. Reviewing your home loan could save thousands over its term, and CBG Finance can identify opportunities to refinance or switch to products with better features—such as offset accounts or redraw facilities. In a market where every basis point counts, a proactive review is one of the smartest financial moves you can make.
Why Choose CBG Finance
Navigating eligibility and lender requirements under the scheme can be complex. CBG Finance, led by Bodee Scullie, offers expert guidance to make the process simple and stress-free. With access to a wide network of lenders, CBG Finance can help you secure competitive rates, negotiate fee waivers, and streamline paperwork, saving you time and money. Whether you’re a first-home buyer or looking to refinance, Bodee provides tailored advice to structure your loan for flexibility and long-term savings.
📞 Call Bodee Scullie on 0473 871 451
📧 Email: bodee@cbgfinance.com.au