Major Expansion of Home Guarantee Scheme from 1 October 2025
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