First Home Guarantee Launching 1 October 2025: What NSW First Home Buyers Need to Know

For years, saving for a first home has been one of the biggest challenges facing Australians. Rising property prices in Sydney and across New South Wales have meant that many first home buyers have struggled to break into the market. Now, there’s good news. From 1 October 2025, the Australian Government’s First Home Guarantee is set to transform the path to home ownership.

This initiative will allow eligible first home buyers to purchase property with as little as a 5% deposit, without the burden of paying costly Lenders Mortgage Insurance (LMI). If you’re a first home buyer in NSW, this could be the perfect opportunity to get your foot in the door.

What Is the First Home Guarantee?

The First Home Guarantee (part of the Home Guarantee Scheme) is designed to help Australians purchase their first property sooner. Under the scheme, the Government guarantees up to 15% of the property’s value, meaning you only need a 5% deposit and won’t have to pay LMI.

What makes the new version of the scheme even more attractive is that from October 2025:

• There will be unlimited places – no more capped quotas.

• There are no income limits, so more buyers will qualify.

• Property price caps are rising, reflecting the real market. In Sydney and major regional centres, the cap increases from $900,000 to $1,500,000. In other parts of NSW, it rises from $750,000 to $800,000.

• The scheme merges with the Regional First Home Buyer Guarantee, creating one simplified program.

Put simply, the First Home Guarantee makes it faster and easier for first home buyers to purchase property, even in high-demand markets like Sydney.

Who Can Apply?

To take advantage of the scheme, you generally must:

• Be an Australian citizen or permanent resident.

• Be a first home buyer (or not have owned property in the last 10 years).

• Have saved at least a 5% deposit.

• Purchase a property you intend to live in (not an investment).

• Meet your bank or lender’s criteria for a home loan.

Applications aren’t made directly — instead, you apply through a participating lender, who will liaise with Housing Australia.

Why Legal Advice Is Essential in NSW

While the First Home Guarantee is a game-changer, buying your first property in NSW is still a legal minefield if you go it alone. Here’s why engaging a solicitor is critical:

• Contract review – Before signing, we carefully review your Contract for Sale to protect you from unfair conditions, missing disclosures, and unexpected costs.

• NSW cooling-off rights – We’ll advise on your 5-day cooling-off period and any risks involved in pulling out.

• Due diligence – From title searches to zoning restrictions and easements, we ensure the property checks out.

• Negotiations – We can negotiate special conditions, extended settlement dates, or adjustments to suit your needs.

• Settlement support – We coordinate with your bank, the vendor’s solicitor, and PEXA to ensure a smooth settlement.

Without legal guidance, many first home buyers risk signing contracts they don’t fully understand — and in NSW, once you sign, you’re bound by the terms.

Why Choose West Legal & Associates

At West Legal & Associates, we’ve helped countless first home buyers across Sydney and NSW achieve their dream of property ownership. We know the ins and outs of the NSW property system, and we understand the specific challenges first home buyers face.

We provide:

• Fast, thorough contract reviews.

• Straightforward advice explained in plain English.

• Clear guidance on the First Home Guarantee and other available concessions.

• Personalised support from contract to settlement.

📞 Ready to Take the First Step?

If you’re considering buying your first home, the time to prepare is now. With the First Home Guarantee starting 1 October 2025, you don’t want to miss out.

✅ Call us today on (02) 9191 7319 to speak to one of our experienced property solicitors.
✅ Email us a copy of your Contract of Sale at info@westla.com.au for immediate review.
✅ Visit us at www.westla.com.au to learn more.

Let us help you make your first home purchase smooth, secure, and stress-free. With the right legal support, you’ll be moving into your new home sooner than you think.

This page is general in nature and is not to be considered legal advice.