Thinking of Buying Your First Home? Big Changes You Need to Know

• Business News

News Flash: Significant Changes to the First Home Buyer Guarantee Scheme

The Federal Government has enacted an expansion of the First Home Buyer Guarantee Scheme, commencing 1 October 2025, three months ahead of the originally scheduled launch, designed to streamline accessibility and increase home ownership across Australia.

Key Changes

1. Unlimited Places– The scheme’s annual cap has been abolished. From October 2025, there will be unlimited places available to eligible first-home buyers, eliminating access bottlenecks.

2. No Income Restrictions – Previously, income thresholds applied based on individual or couple status. These restrictions will be removed, opening eligibility to all first-home buyers, regardless of income.

3. Increased Property Price Caps – Caps have been realigned to current market conditions. For instance, Perth’s cap increases from $600,000 to $850,000 and regional Western Australia’s cap increases from $450,000 to $600,000. See the below table for the changes to the price caps.

4. 5 % Deposit & No LMI – Buyers can enter the market with a 5 % deposit, with the government guaranteeing the remainder of the loan and eliminating the need for Lenders Mortgage Insurance (LMI).

How to apply for the Home Guarantee Scheme after 1 October 2025?

1. Check your eligibility with the Home Guarantee Scheme Eligibility Tool. A new Eligibility Tool will be available from 1 October 2025.
2. Check the new property price caps for your area (see table below).
3. Contact a Participating Lender and apply.
4. Lenders will submit eligible applications to Housing Australia and process pre-approval.
5. Find a place to call home!

Remember that normal lending practices will still be applied by the banks. If you are running a business, you will be required to provide up to date financials and tax returns, so if you are thinking of purchasing your first home using the scheme, reach out to the Elevate Accounting team today so we can ensure you are prepared and ready to apply!