From 1 January 2020, the federal government will guarantee 15 per cent of the mortgages for first-home buyers who have been able to save only 5 per cent of the property’s purchase price. 

The overview:

  • The government will guarantee 15 per cent of a 20 per cent deposit to the banks, meaning you will need to save only 5 per cent
  • Your mortgage will still be 95 per cent of the purchase price
  • This will enable first-home borrowers avoid lenders mortgage insurance.

Some terms:

  • This is available only to first-home buyers as per the current definition
  • Income limitations apply for eligibility. Individuals must be earning less than $125,000 per annum, and couples less than $200,000 per annum.
  • This is a limited offer available to only 10,000 first-home buyer
  • The value of eligible homes under the scheme will vary by region
  • The scheme starts on 1 January 2020.


  • Avoid paying mortgage insurance, which saves thousands of dollars
  • Allow first-home buyers into the market quicker, avoiding possibility of property price rises.

More information will be available closer to the end of the year, but this article provides an overall snapshot.  For more information contact Master Builders Financial Services on 1300 137 539.

For more information about stamp duty savings and first-home buyer benefits, access the State Revenue Office here.


Please note: the information in this article is general in nature and not to be considered specific advice.  For tailored credit advice, contact Master Builders Finance on 1300 137 539