Unlimited Places & Higher Price Caps: A Game-Changer for First Home Buyers

Buying your first home is about to get a whole lot easier. From 1 October 2025, the Australian Government’s expanded Home Guarantee Scheme will roll out with some major changes designed to help more Australians step onto the property ladder sooner.

What’s Changing?

The new rules remove some of the biggest hurdles for first home buyers:

• No place limits – Every Australian first home buyer with a 5% deposit can now apply. No more missing out because the spots “ran out.”

• No income caps – Higher-income earners can also access the Scheme, opening the door for more Australians who were previously excluded.

• Higher property price caps – Reflecting today’s market conditions, buyers will now have more options across capital cities and regional centres.

• Simpler regional access – The Regional First Home Buyer Guarantee will be replaced by the broader First Home Guarantee, making it easier for regional Australians to buy where they live.

On top of this, buyers can still avoid Lenders Mortgage Insurance (LMI) a saving of tens of thousands of dollars in some cases.

Property Price Caps: What You Need to Know

Here’s a snapshot of the new property price caps effective 1 October 2025:

These higher limits are a game-changer, especially in Australia’s major cities where property prices have surged.

How to Apply

From 1 October 2025, the process will be simple:

1. Check your eligibility – A new online tool will launch to make this easier.

2. Review property price caps – Make sure your dream home falls under the new thresholds.

3. Contact a participating lender – Over 30 lenders across Australia, including major banks and customer-owned banks, are part of the Scheme.

4. Get pre-approved – Lenders submit your application to Housing Australia.

5. Find your home!

Avoiding First-Home Buyer Mistakes

While this expanded Scheme opens doors for thousands of Australians, it’s important to approach your first purchase wisely. Many first-home buyers make avoidable mistakes, like:

• Overstretching the budget by chasing “dream homes” instead of starting with a stepping-stone property.

• Forgetting about hidden costs such as stamp duty, moving expenses, and maintenance.

• Rushing into the wrong property without proper research on the suburb, future infrastructure, or growth potential.

🎥 To help you prepare, check out this video: a quick and practical guide to what not to do when stepping into the market.

Why This Matters

For years, saving a 20% deposit has put home ownership out of reach for many Australians. By reducing the deposit hurdle to just 5% and now lifting caps and removing restrictions this expanded Scheme gives more first home buyers a fair shot at ownership.

It also delivers on the Federal Government’s promise to make home ownership more accessible, especially for younger Australians and families struggling with affordability.

The Bottom Line

If you’ve been putting off buying your first home because saving felt impossible, October 2025 could be your moment. With unlimited places, higher price caps, and no income barriers, the path to owning a home is about to get easier.

Want to see if you’re eligible? Start exploring now so you’re ready to move fast when the changes come in.