What the Government’s 5% Deposit Expansion from 1st October 2025 Means For You!

From October 1st 2025, the Federal Government is removing some of the biggest barriers first home buyers are currently facing. The popular Home Guarantee Scheme, sometimes referred to as the 5% deposit scheme, is being expanded in ways that make it easier than ever to get into the market.

So what’s changing, and more importantly, how can Search Mortgages help you take advantage of these opportunities?

The changes you need to know about

For the first time, there will be unlimited places in the scheme. This means you don’t have to race against thousands of other applicants just to secure a spot. Instead, if you’re eligible, you can apply.

Another big shift is the increase in property price caps. In Adelaide, the maximum property price eligible for the scheme is rising from $600,000 to $900,000, giving you far more choice when searching for your first home. Regional South Australia will also benefit from this, as the price cap in these areas will rise from $450,000 to $500,000.

The scheme still allows you to purchase with as little as a 5% deposit, while avoiding the costly Lenders Mortgage Insurance (LMI), which normally comes when your deposit is under 20% of the purchase price. In real terms, this could save you tens of thousands of dollars and years waiting.

Why this matters for Adelaide buyers

The biggest hurdle to homeownership has always been the deposit. Saving 20% while paying rent, bills, and everyday expenses can take years. For example, on a $600,000 home, that’s $120,000 in savings. Under this scheme, you’d only need $30,000.

Now, with the higher price cap of $900,000 in Adelaide, you aren’t forced to restrict your search to entry-level suburbs. You can look at a wider range of homes, from established areas closer to the CBD to growing lifestyle regions just outside the city.

The removal of income caps also means buyers who previously earned “too much” to qualify can now take part. This is a big win for households on strong incomes who were previously excluded but struggle to keep pace with rapidly increasing property prices and the challenge of saving a full 20% deposit.

These changes are designed to make home ownership more achievable, especially in markets like Adelaide, where property values have been steadily rising. With higher price caps and no place limits, more first-home buyers will have the chance to secure a property that truly suits their lifestyle, not just what fits within an outdated threshold.

How Search Mortgages can help

Understanding the rules is one thing. Navigating the process, comparing lenders, and knowing which home loan is right for you is another. That’s where the team at Search Mortgages comes in!

Here’s how:

Personalised eligibility check

Every buyer’s situation is unique. We’ll sit down with you, assess your deposit, income, and property goals, and confirm whether you qualify for the scheme. This means no guesswork or wasted time.

Access to more lenders

Not every bank or lender participates in the scheme, and those that do can offer very different loan terms. Because we’re experienced mortgage brokers, we have over 60 lenders on our panel, meaning we can compare options across dozens of lenders to find the right fit for you.

Smarter loan structuring

We know that no two people are the same, so we make sure that we find loan products that suit your individual needs and goals.

Local knowledge

Our Adelaide-based team understands the property market, from city fringe developments to regional South Australia. We’ll help you target suburbs that fall within the new $900,000 cap, giving you more choice and confidence in your search.

End-to-end support

From preparing your application and securing pre-approval, to working with your conveyancer and lender through settlement, we’re by your side at every stage. Our role is to make the process smooth, stress-free, and tailored to your goals.

Why act now

Although there are no longer place limits, waiting until the last minute could mean missing out on the property you want. By preparing early, such as getting a pre-approval, checking your eligibility, and having your deposit in place, you’ll be ready to move quickly when the right home comes along.

Taking the next step

The expansion of the Home Guarantee Scheme is a golden opportunity for first-home buyers. But it’s only valuable if you’re prepared to take advantage of it. At Search Mortgages, we’re already helping first home buyers get ready for the October changes so when the time comes, you’re not scrambling, but instead you are confident.

If buying your first home has been on yur mind, now is the time to start the conversation. Let’s work together to make sure you’re not just ready on paper, but truly ready to step into the property market.