Buying your first home has often felt like climbing a mountain but change is here. From 1 October 2025, Australia’s expanded Home Guarantee Scheme opens the door for first-time buyers to purchase with just a 5% deposit and avoid the added cost of Lender’s Mortgage Insurance (LMI). Even better? The property price cap in Melbourne has jumped to $950,000, putting more homes (and house-and-land packages in Wollert) within reach.
What’s changed with the First Home Guarantee?
- Lower deposits: Buy with 5% down instead of the usual 20%.
- No LMI: Save thousands in upfront costs by skipping lender’s mortgage insurance.
- Higher caps: In Melbourne, you can now buy properties valued up to $950,000, including house and land packages, townhouses, apartments, newly built homes, and off-the-plan purchases (with a contract to build).
- No income caps: first home buyers with higher incomes can access the Scheme.
These changes, announced earlier this year, are designed to help first home buyers enter the market sooner without years of saving or settling for a compromise.
Why Wollert is a hotspot for First-Home Buyers
Wollert, in Melbourne’s north, is already on the radar of first-time buyers thanks to its:
- Affordable house & land packages all starting well below the new $950K cap.
- Masterplanned communities with schools, parks, and shopping hubs either built or on the way.
- Family-friendly lifestyle in a suburb where the median age is just 30.
- Growth potential, with future infrastructure upgrades (including a proposed rail extension and major town centre) adding long-term value.
Tips to make the most of the scheme
- Get pre-approval early: Demand is expected to surge
- Calculate your savings: A 5% deposit on a $700K house-and-land package is just $35K. Compare that to the traditional $140K deposit!
- Factor in stamp duty: Don’t forget other upfront costs though Victorian concessions may apply.
- Choose growth locations: Wollert sits in Melbourne’s northern growth corridor, offering both affordability and future upside.
- Work with a broker: Many lenders are already aligned with the scheme.
What this means for Buyers in 2025
If you’ve been sitting on the sidelines, waiting for “the right time” to buy, this could be it. The expanded FHBG combines government support, affordable deposits, and high property caps, giving buyers unprecedented access to Melbourne’s market.
For first-time buyers looking for a balance of affordability, lifestyle, and long-term growth, Wollert is one suburb that should be at the top of your list.
Want to explore Wollert house-and-land packages that qualify under the new First Home Guarantee? Contact us today to discover your options.
Disclaimer: The information used in this blog is indicative only and may not represent the final detail or accurately represent personal circumstances of each person. Cedar Woods gives no warranty concerning the accuracy of the material or information displayed in this blog. Prospective buyers should make their own enquiries and rely on their own investigations and independent advice. All information in this blog is subject to Terms of Use accessible at www.cedarwoods.com.au/Terms-of-Use.