The Home Guarantee Scheme is an Australian Government initiative designed to help eligible home buyers purchase a home with a smaller deposit. It allows eligible buyers to purchase a home with as little as a 5% deposit, with the government guaranteeing the remaining portion of the loan.
As of December 2025, the Scheme operates in Victoria with specific eligibility criteria relating to income and property price caps. Currently in Melbourne, the property price cap is $950,000. This impacts sellers in the Eastern Suburbs, particularly in areas like Balwyn and Doncaster, where properties frequently fall within or near this cap. We’re seeing increased buyer activity from those utilising the scheme, potentially leading to more competitive offers on suitable properties. It’s important to realise that buyers utilising the scheme will likely have a more thorough finance approval process, and a longer inspection period – typically around 2-4 weeks – is common. In 2026, we anticipate continued demand from first home buyers leveraging this scheme, particularly as the moderate growth forecast of 3-6% continues. Sellers should emphasise the appeal of their property to this demographic, focusing on features like renovation potential and proximity to schools, which are key buyer priorities. The First Home Guarantee Scheme is set to be expanded in 2027 to include more buyers.
The Home Guarantee Scheme provides a pathway to homeownership for eligible Victorians, influencing buyer behaviour and potentially impacting sales dynamics in the Melbourne property market.