The Australian Government’s Home Guarantee Scheme is sparking conversation across the property market. While designed to help first-home buyers, the policy is set to influence house prices, demand, and long-term opportunities for investors. At OpenCorp, we’ve unpacked what the scheme really means, and why now could be the right moment to take action.
What Is the Home Guarantee Scheme?
The Home Guarantee Scheme allows eligible first-home buyers to purchase a property with just a 5% deposit, with the government guaranteeing the remaining 15%. This effectively removes the need for lenders mortgage insurance (LMI), saving buyers tens of thousands of dollars.
“The government’s not giving them 15%. What the government’s saying is: don’t get lenders mortgage insurance. Borrow only 5% and we’ll guarantee the difference between 80% and 95% borrowing.”
On a $700,000 home, this could mean around $30,000 in savings, a game changer for first-timers.
Why Should Property Investors Care?
Although investors can’t use the scheme directly, the indirect benefits are powerful:
- Increased demand at entry level – more first-home buyers drive prices up from the bottom.
- Equity growth – investors already holding property can access increased valuations and leverage that equity to expand their portfolio.
- Bottom-up market momentum – growth at the affordable end filters through to middle and higher price brackets.
“It doesn’t directly impact investors, but indirectly it has a massive influence on the results investors will get once it comes into the market in full force.”
Price Caps Expanded – Wider Market Impact
Recent changes have made the scheme even more far-reaching:
- Melbourne cap: $950,000 (up from $800k)
- Sydney cap: $1.5 million (up from $900k)
This expansion means more properties are eligible, intensifying demand in markets that were already competitive.
Rental Demand and Migration
One concern among investors is whether the scheme will reduce rental demand. But with record migration numbers, 563,000 skilled workers entering Australia each year, the demand for rental accommodation remains strong.
“There’s always going to be a demand for housing and particularly rentals. They need more and more rental properties to cover housing for this immigration.”
So while some renters will transition to home ownership, the bigger story is rental undersupply. For investors, this points to ongoing rental yield strength.
Timing, Sentiment and Investor Opportunity
The scheme is set to inject demand from 1 October 2025. Acting early can mean capitalising on growth before it accelerates:
“The best thing an investor could do would be jump in the market right now, ride some growth, and then use that equity to go again.”
Government stimulus also shifts market sentiment. Just as with Home Builder during Covid, confidence can trigger rapid market movement. Investors positioned early often capture the most upside.
OpenCorp’s Take
The fundamentals remain the same:
- Supply: still constrained.
- Demand: about to surge.
- Affordability: boosted by policy support.
- Sentiment: turning positive.
In short, the Home Guarantee Scheme creates conditions where investors can build wealth faster, provided they focus on fundamentals and act strategically.
“A great time to be a property investor.”
Want the full breakdown from our experts?
Watch the full video on YouTube to hear our complete discussion on how the Home Guarantee Scheme could shape your property investment strategy.
