The New First Home Guarantee in 2025: What It Is and What You Need to Know

“You only need a 5% deposit to buy your first home!"

The headlines make it sound simple. But here's what most first-home buyers in Sydney discover too late: that 5% deposit on a $1.5 million property actually requires closer to $150,000 in cash, not $75,000.

From October 1, 2025, the First Home Guarantee removed income caps and raised Sydney's property limit to $1.5 million. It sounds like a game-changer—and for some buyers, it genuinely is. But as financial advisers in Emerging Wealth, we're seeing a dangerous gap between the marketing headlines and the financial reality.

Stamp duty alone on properties above $800,000 can add $40,000-$65,000 to your upfront costs.

Then there are legal fees, inspections, and moving costs. Suddenly, that "affordable" 5% deposit looks very different.

Is the First Home Guarantee right for you? Let's break down who truly benefits and the critical considerations the headlines won't tell you.

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