Game-Changing Plan to Help First Home Buyers Get Ahead

Following his recent re-election, Prime Minister Anthony Albanese has wasted no time in reaffirming his commitment to tackling Australia’s housing affordability crisis, with the rollout of a major new initiative designed to give first home buyers a real leg up.

At the centre of the plan is a bold policy that allows eligible Australians to purchase their first home with just a 5% deposit — and crucially, without having to pay Lenders Mortgage Insurance (LMI), which can add up to $23,000 to the cost of a loan. The government will instead guarantee up to 15% of the loan value, eliminating a major barrier for thousands of Australians looking to enter the market.

The newly expanded scheme, already in operation under income caps, is now open to all first-time buyers who are Australian citizens and intend to live in the property — with no income limits and no cap on the number of places available. Price thresholds have also been lifted to reflect current market conditions, with Sydney buyers eligible for homes up to $1.5 million and Queenslanders up to $1 million.

This move is part of a broader $43 billion housing investment — the largest in modern Australian history — aimed at addressing both accessibility and supply. The government has committed $10 billion toward building 100,000 homes across the country, reserved exclusively for first home buyers. Construction is expected to commence in 2026–27, with occupancy available from the following financial year.

Albanese has called the policy “a guarantee for young Australians,” noting that when a buyer saves a 5% deposit, “my government will back them in with their bank so they can get into a home sooner.”

The expanded support is expected to lift participation significantly, with the number of Australians using the scheme projected to grow from 50,000 to nearly 80,000 per year.

From January 2026, all eligible first-time buyers will be able to access the 5% deposit guarantee, giving many a genuine chance to move from renting to owning — years sooner than they’d otherwise manage.