The Australian Government is expanding the Home Guarantee Scheme (Scheme) to make it easier for first-home buyers to enter the property market. With unlimited places and higher property price caps, the Scheme aims to help more Australians purchase their first home sooner.

From 1 October 2025, the Scheme will remove limits on the number of Government guarantees available. This means all Australian first home buyers can apply with a deposit as low as 5% and avoid paying Lenders Mortgage Insurance (LMI). These changes aim to make home ownership more accessible and affordable.

Key Updates from 1 October 2025

The expanded Scheme introduces several important changes:

• Unlimited Places: There will no longer be a cap on the number of Government guarantees available. Any first home buyer with a 5% deposit can apply.
• No Income Caps: Higher-income earners can now access the Scheme, making it available to a broader range of buyers.
• Higher Property Price Caps: Property price limits are increasing. In recognition of this, the Scheme will increase property price caps to better align with market conditions. For example:
  • In New South Wales, the price cap for homes in capital cities and regional centres will rise from $900,000 to $1,500,000.
• Simplified Regional Access: The Regional First Home Buyer Guarantee will be replaced by the First Home Guarantee, streamlining the process for buyers in regional areas.

Considering Purchasing your first Property?…

The changes aim to assist more Australians to enter the property market by removing restrictions like place limits and income caps, and increasing property price thresholds.

It’s important to get the right advice when purchasing your first property. If you have questions about property purchases, reviewing a potential contract, or any other conveyancing matters, contact Transitus Legal today on 02 4294 9980.

Our experienced team is here to guide you through the process and ensure your property transaction is seamless and stress-free.