Home Guarantee Scheme Changes: What Most Brokers Aren’t Telling You

There’s been a lot of noise lately about the Home Guarantee Scheme updates, especially the expanded eligibility criteria as of 1 October 2025. Most brokers are quick to post the headline: “Buy with just a 5% deposit!”

But here’s the reality: just because you qualify doesn’t mean you can afford to buy.

At BID Capital, we support the intent of the scheme - helping more Australians access the property market - but we also believe in full transparency. And that means highlighting the details many others skip over.

What the scheme offers, and what it doesn’t

Yes, the scheme allows eligible buyers to purchase with a deposit as low as 5% without paying Lenders Mortgage Insurance (LMI). That sounds appealing, especially for first-time buyers. But it’s only part of the story.

Here’s what most brokers aren’t saying:

• You still need to service the loan. Lower deposit doesn’t mean lower repayments. If your income hasn’t increased, you may not qualify for the loan size you’re hoping for.

• Stamp duty still applies. If the property is over the state threshold (e.g. $700k+ in some regions), you’ll need to fund that upfront. That’s often tens of thousands of dollars out-of-pocket.

• You may be approved on paper, but not in practice. Just because you’re eligible doesn’t mean it’s the right financial move.

Why it matters

We’ve seen too many borrowers get caught up in the excitement of a government incentive, only to discover the numbers don’t stack up for their actual situation.

That’s why, at BID Capital, we take every scheme application through a detailed, fully assessed process, including servicing capacity, upfront costs and risk buffers. We’ll always give you a clear picture, not just a pre-approval based on assumptions.

This isn’t about hype. It’s about helping you make confident, informed decisions.

If you're considering the Home Guarantee Scheme and want to know whether it truly fits your goals and budget, we’re here to talk it through and can give you an honest assessment - before you making a big financial commitment

Let’s run the numbers properly.

www.bidcapital.com.au/contact-us

 (07) 3179 7085