Buying your first home has become a little easier this month, thanks to the expanded federal government’s Home Guarantee Scheme, which is helping more Victorians achieve the dream of home ownership with a 5% deposit.
From 1 October 2025, the Government lifted both the income and price caps, opening the door for more first home buyers to qualify. In Victoria, the threshold for new homes has increased to $950,000, giving purchasers in communities like Windermere in Mambourin greater flexibility and access to quality homes in Melbourne’s fast-growing western corridor.
“It represents a great opportunity for first home buyers. The key advantage is avoiding the cost of Lenders Mortgage Insurance (LMI), which can save buyers thousands of dollars upfront. For many, that is the difference between waiting another few years and being able to buy now,” said David McKenzie, Lending Specialist at Southside Home Loans.
David says around 80% of his current clients are first home buyers, many of whom are now actively exploring opportunities in Windermere. “Windermere is a popular place for first home buyers. We are witnessing a strong level of enquiry every week from first home buyers, particularly couples looking for house and land packages in the $600,000 to $650,000 range,” he said.
“The changes haven’t stretched household budgets because the same loan servicing rules apply. Buyers still need to show they can comfortably afford their repayments, but the scheme helps remove that initial deposit barrier.”
Before applying, David recommends buyers obtain a clear picture of their financial position. “We help clients work out their borrowing capacity based on household income, dependents and any existing loans. Even if someone’s borrowing capacity is $800,000, they might not be able to purchase at that level if they don’t have the deposit saved. It is about finding a balance that works for your budget and long-term goals.”
He adds that the recent changes have sharpened people’s focus on saving. “We are seeing more clients cutting unnecessary expenses and consolidating debts to get their finances in order. Saving consistently and eliminating personal loans or credit cards makes a big difference when applying.”
The Family Home Guarantee continues to offer vital support, allowing single parents or legal guardians to buy a home with a 2% deposit and no LMI. “For single applicants with a good income, this is a major step forward. It can make home ownership achievable for those who might otherwise have been locked out of the market,” he says.
For anyone considering buying at Windermere, David’s advice is simple, “Start planning early, save as much as you can and talk to a lending specialist early to understand your options. The scheme is designed to help people get into the market sooner, but preparation is key.”
For further information contact David McKenzie, Lending Specialist, Southside Home Loans, 0409 770 300 or [email protected]
Visit the Windermere Sales Gallery at 275 Greens Road, Mambourin to find out more. Open Saturday – Wednesday from 11am- 5pm. Titled land starts at $303,000 (subject to change).
