
Aug 26, 2025
The changes mean first-home buyers will no longer need to wait for limited spots, worry about income thresholds or struggle against outdated property caps. Instead, with as little as a 5% deposit, eligible buyers can enter the market while avoiding the hefty cost of Lenders Mortgage Insurance (LMI).

What’s changing?
Here’s what the new scheme will look like from 1 October 2025:
Unlimited places – every Australian first-home buyer who meets basic requirements can apply.
No income caps – higher-income earners are no longer excluded.
Increased property price caps – adjusted to reflect today’s market conditions (see table below).
Streamlined access in regional areas – the Regional First Home Buyer Guarantee will be replaced with the First Home Guarantee.
Continued property support – the scheme will still apply to new or existing residential properties, house and land packages, vacant land with a separate building contract and off-the-plan apartments or townhouses.
This expansion builds on the government’s promise to support more Australians into home ownership while tackling affordability challenges.
Why does this matter?
For many Australians, saving a 20% deposit can take close to a decade. Under the expanded scheme:
Buyers can purchase with just 5% deposit.
They will save thousands in LMI costs – government estimates suggest around $1.5 billion in LMI savings in the first year alone.
For example, a buyer in Brisbane could purchase a $1 million home with a $50,000 deposit, saving about $42,000 in LMI and cutting years off their saving timeline.
Housing industry leaders have welcomed the move, noting that more than 210,000 Australians have already purchased homes through the Scheme since its introduction.
Property Price Caps – Effective 1 October 2025

What are the concerns?
While the expansion has been widely welcomed, some experts caution that removing income caps and opening the scheme to all buyers could increase competition, potentially pushing property prices even higher – particularly at a time of housing shortages.
Critics have also argued that the scheme might benefit wealthier buyers who could otherwise purchase without government support.
How to apply?
From 1 October 2025, the process will be simple:
Check eligibility via the Home Guarantee Scheme tool.
Review the new property price caps in your area. (find details in the below).
Apply through a Participating Lender – over 30 lenders nationwide, including major and customer-owned banks, are available.
Secure pre-approval.
Find your new dream home!
To find out more about the Scheme, visit the Housing Australia website here.
Next steps for buyers
The expansion of the Home Guarantee Scheme marks a game-changer for first-home buyers in Australia. With unlimited spots, no income restrictions and higher property caps, more people will finally have the opportunity to step into the property market without years of waiting and saving.
At Select Loan and Mortgage, we work with leading lenders across Australia to guide you through the process and help you access the scheme. If you are planning to buy your first home after 1 October 2025, now is the time to prepare.
📞 Get in touch with us today to discuss your options and get ready to make the most of this exciting opportunity. Link
To read the Australian Government announcement, click here.