From October 1, the Government’s Home Guarantee Scheme will expand to include more first homebuyers and more properties across the country. But while this will create fresh opportunities for those looking to crack the market, it may not be the best option for everyone.

HOW DOES THE SCHEME WORK?

The Home Guarantee Scheme is a national Government scheme that enables eligible first homebuyers to purchase a home using a deposit of 5 per cent without paying Lenders Mortgage Insurance (LMI). Housing Australia effectively acts as a guarantor in order for your lender to waive the LMI on a loan of up to 95 per cent of the property’s value.

“Under this scheme, the government doesn’t lend you any money that you have to pay back,” says Canstar data insights director Sally Tindall. “Instead, what it

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