The first home guarantee is set to expand from Wednesday, making it easier for prospective homebuyers to take out loans.

All first-time buyers will be eligible for the federal government’s scheme, which waives the lender’s mortgage insurance charged to borrowers with small deposits (though there are caps on loan values).

The scheme is designed to help thousands of people buy a home sooner, but experts say it will keep property prices surging into 2026, with median values tipped to rise up to $85,000 higher than they are today.

Here’s what you need to know about the expanded first home guarantee.

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