First home buyers, Home Loans

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Big Changes Coming to the Home Guarantee Scheme: What First Home Buyers Need to Know

By Tameka Gray

17 September 2025

From 1 October 2025, the Australian Government is making significant updates to the Home Guarantee Scheme, opening more doors for first home buyers to get into the property market. With unlimited places, no income caps, and increased property price limits, this expansion could be the opportunity many have been waiting for.

What’s Changing?

The changes are designed to make home ownership more accessible across Australia. Key updates include:

• Unlimited places – all eligible first home buyers with a 5% deposit can apply (no more waiting for limited allocations).
• No income caps – buyers with higher household incomes can now take part.
• Higher property price caps – recognising rising property prices, the Government has increased the maximum property value eligible under the scheme.
• Simpler regional access – the Regional First Home Buyer Guarantee will be streamlined into the broader First Home Guarantee.

New Property Price Caps (from 1 October 2025)

Here’s how the new limits compare:

Location                                                                      Current Cap                                  New Cap (from 1 Oct 2025)
NSW – capital city & regional centre                  $900,000                                         $1,500,000
NSW – other                                                                $750,000                                          $800,000
VIC – capital city & regional centre                    $800,000                                          $950,000
VIC – other                                                                   $650,000                                          $650,000

These changes mean that buyers in high-demand markets, particularly Sydney and Melbourne, will have greater opportunities to purchase a property without the added burden of Lenders Mortgage Insurance (LMI).

What This Means for You

For first home buyers, the updated scheme removes many of the roadblocks that have made entering the property market difficult. With higher property caps and no income restrictions, more buyers will be able to purchase a home that suits their needs while saving thousands on LMI.

At Qubed Advisory, we help clients navigate the financial side of buying property – from understanding eligibility to securing the right loan structure for long-term financial success.

Tameka Gray