First Home Buyers: Big Changes to the First Home Guarantee Scheme Starting October 1st

If you’ve been dreaming of buying your first home but struggling with the upfront costs, there’s good news on the horizon. From October 1st, 2025, the Australian Government is rolling out major updates to the First Home Guarantee Scheme—and they’re designed to make home ownership more achievable than ever.

These changes remove key barriers that have held many buyers back, including income limits and capped places. Whether you're buying in a metro area or a regional town, the new rules could help you get into your first home sooner, with less deposit, and no Lenders Mortgage Insurance (LMI).

What’s New in the Scheme?

Here’s a quick rundown of the most impactful updates:

• Unlimited Places Available

  
  

  No more waiting lists or missed opportunities. Every eligible buyer can now access the scheme.

• No Income Caps

  
  

  The previous income thresholds have been removed, meaning more Australians can qualify—regardless of how much they earn.

• Higher Property Price Caps

  
  

  Property limits have been increased to reflect current market conditions.

  
  

  Example: In Townsville and surrounding areas, the cap has jumped from $550,000 to $700,000.

• Simplified Regional Access

  
  

  You no longer need to prove 12 months of regional residence to apply. This makes it easier for buyers moving into regional areas or returning home.

Key Benefits for First Home Buyers

These updates aren’t just about eligibility—they’re about real savings and greater flexibility:

• No LMI Costs

  
  

  Lenders Mortgage Insurance can add thousands to your loan. Under the scheme, you can avoid this cost entirely.

• Low Deposit Requirements

  
  

  You only need 5% deposit to buy your first home—or as little as 2% if you’re a single parent.

• Available for New and Established Homes

  
  

  Whether you’re buying a brand-new build or an existing property, the scheme applies.

• Owner-Occupiers Only

  
  

  The scheme is designed to help people buy homes to live in—not for investment purposes.

Why This Matters

In today’s market, saving a 20% deposit can take years—especially with rising rents and living costs. These changes mean you could:

• Enter the market sooner

• Buy a better home thanks to higher price caps

• Save thousands by avoiding LMI

• Access the scheme regardless of your income

It’s a game-changer for first home buyers across Australia.

What You Need to Do

If you’re considering buying your first home, here’s how to get started:

1. Check your eligibility

   
   

   You must be an Australian citizen or permanent resident, aged 18+, and planning to live in the home.

2. Speak to a participating lender or broker

   
   

   They’ll guide you through the application process and help you understand your options.

3. Start your property search

   
   

   With higher price caps and fewer restrictions, you’ll have more choice than ever.

Final Thoughts

The updated First Home Guarantee Scheme is one of the most generous and accessible government initiatives for first-time buyers in recent years. Whether you’re buying in Townsville, Brisbane, Sydney, or a regional town, these changes could make a real difference in your journey to home ownership.

If you’ve been waiting for the right time to buy—this could be it.