First Home Guarantee Scheme

Big Changes to the First Home Guarantee Scheme, What First-Home Buyers Should Know

From 1 October 2025, major changes to the First Home Guarantee (part of the Home Guarantee Scheme) will come into force opening more opportunities for first-home buyers.

What’s changing

• The scheme will offer unlimited places for eligible first-home buyers (removing the previous cap).

• Income caps for applicants have been removed — meaning more people qualify.

• Property price caps have been increased, aligning with current market values so you can purchase in more suburbs.

• You can still buy with as little as a 5 % deposit, often without paying Lenders Mortgage Insurance (LMI).

  
  

What it means for first-home buyers

• If you’ve been hesitating because you didn’t think you’d get a 20 % deposit, or worried about income caps these changes make your pathway clearer.

• Location matters more than ever: with higher price caps, you may qualify in suburbs previously out of reach.

• You still need to meet lender criteria (income, serviceability, credit) the scheme helps with deposit and LMI, but it doesn’t override standard loan assessments.

• Speak to a broker early: the changes are now live, and being prepared may give you a competitive advantage.

  
  

Key takeaway

 The reforms to the First Home Guarantee are significant. If you’re a first-time buyer who thought buying wasn’t possible — it might now be. Use this window of opportunity with the right guidance to maximise your outcome.