Starting 1 October 2025, buying a first home in Australia could become much easier. The Government has announced major updates to the Home Guarantee Scheme, a program designed to help Australians purchase property sooner by allowing eligible first home buyers to enter the market with as little as a 5% deposit and avoid costly Lenders Mortgage Insurance (LMI).
For years, first home buyers faced hurdles like strict income caps, limited scheme places, and property price ceilings that didn’t reflect today’s rising housing costs. The new changes aim to remove these barriers and make home ownership more achievable, even in a competitive property market.
What’s Changing?
Here’s a breakdown of the updates that will roll out from 1 October 2025:
- Unlimited places – No more limits on the number of guarantees. Any eligible first home buyer with a 5% deposit can apply.
- No income caps – Higher-income earners are now included, meaning more buyers can access the scheme.
- Higher property price caps – Adjustments have been made to reflect current market conditions, especially in capital cities and regional hubs.
- Simplified access in regional areas – The Regional First Home Buyer Guarantee will merge into the broader First Home Guarantee, streamlining the process.
These changes mean that buyers can secure a home with as little as a 5% deposit while avoiding LMI, a significant saving that can help them get into their first property sooner.
Property Price Caps Rising
Property price limits will also increase significantly in many areas, bringing them closer in line with market values. For example:
- NSW capital cities and regional centres: from $900,000 to $1.5 million
- QLD capital city and regional centres: from $700,000 to $1 million
- VIC capital city and regional centres: from $800,000 to $950,000
These adjustments provide greater flexibility for buyers in markets where housing prices have surged.
What This Means for Buyers
The expansion of the Home Guarantee Scheme could be a game-changer. With unlimited places and no income restrictions, the scheme opens the door for a wider range of Australians to step onto the property ladder.
Instead of competing for limited scheme slots, buyers can now plan their property journey with more confidence. Regional buyers also benefit from a more streamlined approach, ensuring fairer access across the country.
Getting Started
From 1 October 2025, buyers can:
- Review their eligibility using the updated online tool.
- Check new property price caps for their area.
- Apply through a participating lender.
The updates to the Home Guarantee Scheme aim to give first home buyers a fairer shot at home ownership, even in today’s high-priced market. By removing restrictions and expanding access, the scheme supports more Australians in turning the dream of owning a home into reality.
Thinking about buying your first home? Now could be the time to prepare. Contact us today to explore your options and take advantage of these upcoming changes.
To find out more about the Scheme, and view our Frequently Asked Questions, visit the Housing Australia website here.
The Housing Australia Investment Mandate Amendment to effect these changes can be found here.
Note: These changes are not effective until 1 October 2025. The Home Guarantee Scheme is still available for borrowers to access today with the current eligibility criteria and price caps.
To read the Australian Government announcement, click here.