Major Expansion of Home Guarantee Scheme from 1 October 2025

Written By Stephen Cole

Starting 1 October 2025, the Australian Government is expanding the Home Guarantee Scheme to make buying your first home more accessible than ever. The changes mean:

  • All eligible first-home buyers can apply—there’s no limit on places.

  • Income caps are gone—higher-earning buyers are included too.

  • Property price caps are rising, letting you target more locations.

  • A single Scheme now replaces separate regional programs, simplifying access.

How it Works
With just a 5 % deposit and no Lenders Mortgage Insurance, you can tap into the guarantee. Applies across Australia through over 30 participating lenders—from major banks to regional and customer-owned institutions.

What’s Changed from 1 October 2025

Feature Before After 1 October 2025
Place limits Limited number of spots Unlimited places — all eligible applicants can apply
Income caps Existing caps applied Removed — regardless of income
Property price caps Lower limits Significantly raised, varying by state/territory
Regional access Separate regional guarantee Unified under the First Home Guarantee

New Property Price Caps by Location
(New cap effective 1 October 2025)

  • NSW (capital city & regional centres) – $1,500,000

  • NSW (other) – $800,000

  • VIC (capital & regional centres) – $950,000

  • VIC (other) – $650,000

  • QLD (capital & regional centres) – $1,000,000

  • QLD (other) – $700,000

  • WA (capital city) – $850,000

  • WA (other) – $600,000

  • SA (capital city) – $900,000

  • SA (other) – $500,000

  • TAS (capital city) – $700,000

  • TAS (other) – $550,000

  • ACT – $1,000,000

  • NT – $600,000

  • Jervis Bay & Norfolk Island – $550,000

  • Christmas Island & Cocos (Keeling) Islands – $400,000

Note: “Regional centres” include Illawarra, Newcastle & Lake Macquarie (NSW); Geelong (VIC); Gold Coast & Sunshine Coast (QLD).

Why It Matters

  • More buyers can get in, including those previously blocked by caps.

  • With higher price caps, suburbs once out of reach now qualify—like many properties in Sydney, Melbourne, Brisbane, Adelaide and more.

  • No income restrictions opens the way for a broader pool of buyers.

  • Removing competition for limited spots means you can plan your application without rushing.

Final Thought
These changes are a game-changer for aspiring homeowners. By cutting deposit requirements, lifting limits, and simplifying regional access, the Government is enabling more Australians to achieve home ownership sooner.

The full government announcement can be read at https://www.pm.gov.au/media/albanese-government-delivers-5-deposits-all-first-home-buyers-sooner

Stephen Cole https://www.scfcpa.com
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