The Australian Labor Government rolled out its expanded Home Guarantee Scheme on October 1, 2025, allowing first home buyers to secure mortgages with a 5% deposit without lenders mortgage insurance, with Prime Minister Anthony Albanese and Housing Minister Clare O’Neil projecting 50,000 participants in the first year and average savings of $20,000 in fees.
The uncapped policy raises property price thresholds to $1.5 million in Sydney and $1 million in Melbourne, targeting incomes under $125,000 for singles or $200,000 for couples.
Opposition leaders including Peter Dutton and economists criticize the initiative for potentially increasing property prices and household debt amid ongoing supply shortages.
