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Banks welcome move to bring forward the Home Guarantee Scheme

Banks welcome move to bring forward the Home Guarantee Scheme

25 August 2025

The Australian Banking Association (ABA) has welcomed today’s announcement from the Federal Government to bring forward the start of the Home Guarantee Scheme.

Under the Guarantee, eligible first home buyers are able to purchase a home with a smaller deposit and avoid paying lenders’ mortgage insurance.

ABA CEO Simon Birmingham said it made sense to bring forward the start date of the scheme to 1 October, helping more first home buyers get into the property market sooner.

“Home ownership remains one of the most important financial and personal milestones for Australians, however housing affordability remains a significant challenge for many,” Mr Birmingham said.

“Bringing forward the start date of the Scheme is a sensible and practical decision that will support more first home buyers realise the dream of home ownership sooner than may have otherwise been the case.

“While this will be a welcome boost for many first home buyers, it is essential that broader measures to increase supply and build more homes for all Australians are also delivered upon.

“Banks will continue working with government, regulators and first home buyers to help them safely and sustainably access credit to purchase their first home.”

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