money money money 834 First Homebuyer Guarantee now changing in October: impact on FHBs, investors & property market
Aug 25, 2025
Rachelle Kroon, from Sphere Home Loans, shares real-world case studies illustrating the impact of the upcoming changes to the First Homebuyer Guarantee. John Pidgeon, from the This Is Property podcast, discusses how these changes might affect investors and the broader property market. They delve into strategies for first-time buyers, the challenges in a fluctuating housing market, and the potential for increased housing shortages. The conversation also touches on the implications for supply and demand as the scheme gears up for its October 2025 rollout.
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Federal 5% Guarantee Rolled Forward
- The government will let first home buyers use a 5% deposit backed by a federal guarantee instead of lenders mortgage insurance.
- The planned rollout moved from January to October 2025, accelerating access for many buyers.
Real Client Savings Examples
- Rachelle described a Queensland buyer of a $750,000 home who now needs about $43,000 instead of $70,000 and saves ~$20,000 in LMI.
- She also cited a $1.5M NSW purchase where buyers save $50,000 in LMI and need $70,000 less upfront.
Eligibility Widens Dramatically
- Income caps were removed and annual spot limits lifted, widening eligibility, including high earners.
- This change makes many couples with six-figure incomes newly eligible for the guarantee.
