From 1 October 2025: No cap on places and higher property price limits for first home buyers

The Australian Government is expanding the Home Guarantee Scheme with unlimited places and higher property price caps, making it easier for more Australians to buy their first home sooner.

From 1 October 2025, the Scheme will remove caps on the number of Government guarantees available, allowing all eligible first home buyers to purchase a property with as little as a 5% deposit while avoiding Lenders Mortgage Insurance.

This expansion of the Home Guarantee Scheme delivers on the Government’s election commitment to help more Australians achieve home ownership.

• No place limits: Every Australian first home buyer with a 5% deposit can apply.
• No income caps: Buyers with higher incomes will now be eligible.
• Higher property price caps: Adjusted to reflect rising property values.
• Simpler regional access: The Regional First Home Buyer Guarantee will be rolled into the First Home Guarantee.

The Home Guarantee Scheme will continue to be available nationwide through more than 30 Participating Lenders, including major banks, regional banks, and customer-owned banks.

From 1 October 2025, eligible first home buyers can apply for the Home Guarantee Scheme directly through one of the more than 30 Participating Lenders across Australia. This includes major banks, regional banks, and customer-owned banks.

To apply, you’ll need to:

• Check your eligibility
• Check the new property price caps for your area (see table below)
• Choose a Participating Lender
• Lenders will submit eligible applications and process pre-approval.
• Find a place to call home!

The expansion of the Scheme is expected to have a noticeable impact on the property market:

• Increased buyer demand: With no cap on places, more first-home buyers are likely to enter the market, creating stronger competition for properties.

• Support for affordability: The removal of income caps and the increase in property price limits open doors for buyers who previously didn’t qualify.

• Regional growth: Merging regional guarantees into the First Home Guarantee will make it easier for buyers in regional areas, boosting demand outside capital cities.

• Shift in market dynamics: Sellers may benefit from stronger demand, particularly in suburbs where property prices align with the new caps.

• Opportunities for investors and developers: Higher first-home buyer activity may influence entry-level housing supply and long-term market trends.

• Potential price uplift: Increased competition may push property values higher, especially in entry-level markets.

• Equity growth for early movers: Buyers who act quickly may secure properties before price growth accelerates, giving them a valuable equity advantage.

• Improved confidence in the market: Broader access and policy certainty could encourage hesitant buyers to take action, stimulating overall market activity.

• Potential impact on investor portfolios and the broader financial market: Increased first-home buyer activity may influence investor behavior, leading some to adjust property investments or diversify into other assets, potentially affecting local stock market sentiment.

  Together, these changes are set to reshape the market from October 2025. For buyers, timing and strategy will be more important than ever.

For more information about the Scheme and to view our Frequently Asked Questions, please visit the Ash Buyers Agency.

For personalised guidance on navigating the Home Guarantee Scheme and securing your first home, reach out to Ash Buyers Agency. As your trusted Buyers Agent Sydney, we’re here to simplify the process and support you every step of the way. Call us today on +61 434 111 200 to get started.

Important: These changes will take effect from 1 October 2025. Until then, the Home Guarantee Scheme remains available to borrowers under the current eligibility criteria and price caps.

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