The federal government initiative allowing those looking to buy their first property to put down a deposit of as little as five per cent will begin rolling out from October, three months earlier than its original start time of January 2026.
The October start date will mark an expansion of the deposit scheme to all first home buyers, after previous versions had a yearly cap on the number of participants.
As part of the scheme, the government will act as guarantor and contribute the remaining 15 per cent of a deposit, allowing buyers to not take out costly lenders mortgage insurance.
The earlier start date for the scheme would reduce hurdles to entering the property market, Prime Minister Anthony Albanese said.
"We want to help young people and first home buyers achieve the dream of home ownership sooner," he said.
"Bringing the start date of our five per cent deposit scheme will do just that, getting more Australians into their home quicker, while saving money along the way."
Prince caps for eligible homes in the scheme in almost all jurisdictions have been increased.
A first home buyer looking to purchase a property at the national median price of $844,000 would only need a $42,200 deposit to get their own home.
A deposit of $75,000 would be needed for the maximum property value of $1.5 million in Sydney.
The Property Council of Australia said that bringing forward the scheme will help more first home buyers bridge the deposit gap and enter the market.
"That said, and I cannot emphasise strongly enough, scheme design will need to be carefully reviewed on a regular basis from 1 July 2026 to ensure key housing markets do not overheat," CEO Mike Zorbas said on Monday.
It's estimated 70,000 people are expected to use the home guarantee scheme in its first year of expanded access, 20,000 more than the current yearly cap.
Housing Minister Clare O'Neil said the scheme would make access to home ownership more equitable.
"The Albanese Labor government is stepping up to level the playing field and back a new generation of first home buyers into the housing market," she said.
"It's just not right that an entire generation of young Australians have been locked out of the housing market, saving for decades while paying off someone else's mortgage."
The scheme's earlier start date comes as upcoming changes to the national construction code were paused to allow for homes to be built quicker.
The code will be put on hold until 2029 with the exception of safety standards, which have been touted as reducing complexity for workers in the construction industry.
The pause follows the federal government's productivity roundtable, which also led to the fast-tracking of environmental approvals for more than 26,000 homes.
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