What's New
in 2026?
The Australian
Government's expanded First Home Guarantee Scheme represents a game-changer for
first-time property buyers. From 1 January 2026, eligible first home buyers can
now purchase a property with just a 5% deposit without paying Lenders
Mortgage Insurance (LMI)—previously requiring 10-20% deposits. The scheme
removes income caps that existed in earlier iterations, dramatically expanding
eligibility across all income levels. With no annual purchase limit, unlimited
properties within the scheme rules, and support for both new builds and
established homes, the 2026 expansion opens homeownership doors for tens of
thousands of Australians. In Victoria, this is particularly significant for
buyers priced out of Melbourne and regional markets, who can now enter the
property market with minimal upfront capital while maintaining financial
flexibility for conveyancing costs, inspections, and settlement expenses.
How This
Affects Your Conveyancing Process
The expanded
scheme streamlines your conveyancing journey in several important ways. First,
the reduced deposit requirement means more buyers can proceed to contract
exchange faster, as lenders approve mortgages more readily when the government
backs the loan through the guarantee. Second, because there's no LMI to pay,
you save 2-5% of your loan amount, freeing up funds for professional
conveyancing services, pest and building inspections, and other essential
pre-settlement costs. Third, settlement timelines may actually accelerate since
lenders processing guaranteed loans often move faster through approval stages -
though you should still expect the standard 6-12 week conveyancing process. At
MKJ Conveyancing, we've noticed increased inquiry from first home buyers since
the scheme expansion, and we recommend acting decisively: once you've found
your property and your bank confirms loan eligibility under the guarantee,
engage your conveyancer immediately. We'll guide you through property searches,
negotiate any contract terms, and ensure all compliance requirements are met
before settlement. The key advantage? With the scheme reducing financial
pressure on your deposit, you can invest more confidently in professional legal
advice—something that protects you far more than saving a few hundred dollars
on conveyancing fees. If you're a first home buyer in Victoria considering your
2026 purchase, contact us today. We're here to make your conveyancing
experience smooth, transparent, and tailored to your circumstances.
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