New 5% Deposit Scheme Launches 1 October — Unlock Your First Home Sooner!
The Australian Government’s First Home Buyer Guarantee is changing. From 1 October 2025, you can buy your first home with just a 5% deposit* — no income caps, higher property price limits, and no Lender’s Mortgage Insurance. Your dream home is closer than ever before!
*The 5% deposit under the Government’s First Home Buyer Guarantee is different from the 5% building deposit required by Montgomery Homes when you sign a contract. These are separate payments — one relates to your loan with the bank, the other secures your new home build with us.
What’s Changing?
What’s Changing? From 1 October 2025, the Government is rolling out an expanded First Home Buyer Guarantee to help more Australians step onto the property ladder. Here’s what’s new: Expanded 5% deposit scheme, with the Government guaranteeing a portion of a first home buyer's home loan — meaning a lower deposit and no Lenders Mortgage Insurance Income caps removed — more buyers can qualify Property price caps lifted significantly These changes mean many buyers who previously didn’t qualify can now enter the market sooner!
What This Means for You
What This Means for You Under the new scheme, buying your first home has never been easier! Here are just three of the benefits waiting to be unlocked: Save time — saving a 5% deposit will take significantly less time than waiting years to save a 20% deposit. Save money — with Lender’s Mortgage Insurance no longer required, you will avoid tens of thousands of dollars in mortgage insurance costs. Access better homes — property pricing caps being increased means more choice in home design and location.
Eligibility at a Glance
Eligibility at a Glance It is important to connect with a participating lender to determine whether you are eligible for the First Home Buyer Guarantee. In general, you may be eligible if you meet the following criteria: You’re a first home buyer (never owned property before in Australia) You have at least 5% deposit saved You plan to live in the home (not an investment property) You meet lender approval requirements Once you have determined your eligibility, you will need to attain finance pre-approval to calculate your borrowing power, choose the home you wish to buy or build, and secure your place within the scheme.
Why Build with Montgomery Homes
Why Build with Montgomery Homes At Montgomery Homes, we have helped many first home buyers turn their dream into a reality. With the new scheme starting in October, it’s never been a better time to explore: House and land packages in highly sought-after estates across Sydney, Wollongong, the Central Coast, Newcastle and the Hunter Valley Designs tailored for first home buyers with our Emerge Collection Guidance through the finance and approval process All backed by our trusted team who will support you every step of the way
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Tyler & Lauren
First time home buyers Tyler and Lauren invested in their forever home with a Montgomery Homes house and land package. Looking for a home with a variety of living spaces to entertain friends and family, ample storage options and plenty of natural light made the Southport 217 design a perfect choice for them.
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