2 October 2025: The Albanese Government’s expansion of the Home Guarantee Scheme will now allow all first home buyers to purchase property with as little as a five per cent deposit, without the need to pay mortgage insurance. While the reforms are expected to fast-track thousands of Australians into home ownership, family law experts are urging caution.
Liz Catton, Accredited Family Law Specialist and Director at Catton & Tondelstrand Family Lawyers, warns that first home buyers need to think beyond the contract of sale and ensure their investment is protected.
“With more first home buyers entering the market under this scheme, which was brought forward to start this week, we are strongly encouraging people to consider whether it may be appropriate to enter into a Financial Agreement if your purchase is made while you are in a relationship. A Financial Agreement can be used to protect your assets – in this case, your first home – from the cost, stress and delay of court proceedings, should the relationship break down,”Catton said.
Financial Agreements (commonly referred to as prenuptial agreements in the US or BFA’s) are legally binding contracts under the Family Law Act where parties can agree how assets, liabilities and financial resources will be divided if a relationship ends. These can be entered into, before, during or after a de facto relationship or marriage begins.
Catton explained that parties’ should really consider seeking experienced family law advice about ways to best protect the financial contributions they make including contributions either by way of gift or loan through the ‘bank of mum-and-dad’ – which is becoming increasingly more common.
“We are seeing more parents providing loans or contributions to help their children buy their first home. A properly drafted loan agreement entered into with parents or other family lenders and a financial agreement will often be the best way to protect treatment of a gift or loan if the child’s relationship later breaks down,” she said.
Catton & Tondelstrand Family Lawyers say that while the government’s housing reforms will ease the path to home ownership, new buyers should not underestimate the importance of protecting what is often their most valuable asset.
“Buying your first home is an exciting milestone. Taking the extra step to secure that investment with a Financial Agreement provides peace of mind and clarity if life takes an unexpected turn,” Catton said.
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