BIG CHANGES TO THE FIRST HOME GUARANTEE FROM 1 OCTOBER 2025

Good news for first-home buyers — from 1 October 2025, the First Home Guarantee (FHG) is expanding, making it easier for more Australians to buy a home with just a 5% deposit.

Whether you're ready to buy or just watching the market, these changes could shape your next move.

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What Is the First Home Guarantee?

The FHG is part of the government’s Home Guarantee Scheme, helping eligible buyers enter the property market sooner, without needing a full 20% deposit or paying lender’s mortgage insurance (LMI).

How it works:

• Buy with a 5% deposit

• The government guarantees up to 15% of the property’s value

• Avoid LMI

• Available to first-home buyers or those who haven’t owned a home in 10+ years

Previously, there were income limits, location restrictions, and price caps — but that's all changing.

What’s Changing?

From 1 October 2025, the scheme is expanding:

✅  No location limits — anyone in Australia can apply

✅ No income caps — higher earners now eligible

✅ Higher property price caps:

• Brisbane: from $700K → $1M

• Sydney: from $900K → $1.5M

✅ Simplified regional access — regional guarantee rolled into the main scheme

What This Means for Buyers

These changes could mean buying sooner. 

Let’s break it down with a couple of examples, based on modelling from Cotality and income data from the ANU Centre for Social Policy Research (March 2025).

🔹 Brisbane

• Median home value: $934,623

• 20% deposit: $186,925 – would take 11 years to save

• 5% deposit: $46,731 – could be saved in 3 years

🔹 Sydney

• Median home value: $1,228,435

• 20% deposit: $245,687 – would take 13 years to save

• 5% deposit: $61,422 – achievable in 3 years

Could Prices Rise?

Possibly. With more buyers entering the market — and interest rates expected to drop — demand could push prices up.

Treasury estimates the scheme could add 0.5% to prices over 6 years, though some experts believe the impact may be greater.

Thinking About Buying?

With the expanded scheme, now’s a great time to explore your options — and we’re here to help.

As your local real estate agency, we can:

• Explain how the scheme works

• Connect you with mortgage experts to check your eligibility

• Help you find properties within the new price caps

• Guide you through the buying process from start to finish

Want to know more? Get in touch today — let’s find your first home.