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From 1 October 2025, the expanded Home Guarantee Scheme is making it easier than ever for Victorians to step onto the property ladder. Eligible buyers can purchase a home with as little as a 5% deposit, avoid costly Lender’s Mortgage Insurance (LMI), and take advantage of new price caps that put more properties within reach.
For Melbourne buyers, the property cap has increased to $950,000, meaning a wide range of homes including townhouses, house and land packages, and land with a build contract may now qualify.
What’s changed with the First Home Guarantee?
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Lower deposits: Buy with just 5% down, instead of the typical 20%.
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No LMI: Save thousands by skipping Lender’s Mortgage Insurance.
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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.
For full details, see the Home Guarantee Scheme on Housing Australia.
Why this matters for First Home Buyers in Victoria
Buying your first home has always been one of the biggest milestones in life but saving for a 20% deposit often pushed the dream out of reach. With the expanded FHBG, first-time buyers in Victoria can step into the market sooner, with greater flexibility to choose a home that truly fits their needs in a community offering long-term value.
Cedar Woods communities across Victoria
Whether you’re searching for a townhouse in an established suburb or a house and land package in Melbourne’s thriving growth corridors, our Cedar Woods communities give you options that may qualify under the new scheme:
- Addison Walk, Williams Landing - Townhouses
Contemporary townhouses in Melbourne’s west, close to shops, transport and parklands. - Mason Quarter, Wollert - Land and House & Land
Located in Wollert, Mason Quarter offers land lots and house & land packages in a master planned community designed for young families. - Clara Place, Fraser Rise - Land and House & Land
Positioned in Fraser Rise, Clara Place combines affordability with lifestyle, offering house and land packages in a connected, family-friendly neighbourhood.
Tips to make the most of the Scheme
- Get pre-approval early: Demand is expected to surge.
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Calculate your savings: A 5% deposit on a $700K house and land package could be just $35K (instead of $140K for a 20% deposit).
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Plan for extras: Don’t forget stamp duty and moving costs, concessions may apply.
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Choose growth locations: Suburbs like Wollert, Williams Landing, and Fraser Rise sit in growth corridors, offering both affordability and future upside.
Start your journey today
With the First Home Guarantee expanding from 1 October 2025, now is the perfect time to explore your options. Whether it’s a townhouse at Williams Landing or house and land at Mason Quarter or Clara Place, Cedar Woods has a range of opportunities for first home buyers across Victoria.
Explore our Victorian communities today and find the home that’s right for you.
Disclaimer: The information used in this document 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.
