Starting from October 1, 2025, First Home Buyers will find it even easier to achieve their homeownership dreams. The Federal Government is expanding the Home Guarantee Scheme, enabling first-time buyers to purchase a property with just a 5% deposit and avoiding expensive Lenders Mortgage Insurance (LMI). This major update lifts income restrictions, increases property price caps, and removes limits on the number of guarantees. As a result, thousands more Australians will have the opportunity to buy a home with lower initial costs.
What’s Changing from 1 October 2025?
✅ No caps on places – every eligible first home buyer with a 5% deposit can apply.
✅ No income limits – higher-income earners are no longer excluded.
✅ Higher property price caps – reflecting rising property values.
✅ Simpler access nationwide – one scheme will cover all regions, including metro and regional buyers.
Updated Property Price Caps
| Location | Current Cap | New Cap |
| NSW – Sydney & regional centres | $900,000 | $1,500,000 |
| VIC – Melbourne & Geelong | $800,000 | $950,000 |
| QLD – Brisbane, Gold Coast & Sunshine Coast | $700,000 | $1,000,000 |
| WA – Perth | $600,000 | $850,000 |
| SA – Adelaide | $600,000 | $900,000 |
| TAS – Hobart | $600,000 | $700,000 |
| ACT | $750,000 | $1,000,000 |
Why This Matters
This is one of the biggest changes designed to make first home ownership easier in years. By removing restrictions and lifting property price caps, the Scheme will allow many Australians who were previously locked out of the market to finally make the move.
And with no limit to the number of guarantees available, if you’ve saved your 5% deposit, you now have the green light to buy.
Spiro Kolokithas, Managing Director of What If We Finance, said:
“This is a big change. Home ownership is getting easier, especially when you combine falling interest rates with higher price caps under the Scheme. For example, to buy a $950,000 home now, you only need a 5% deposit of around $47,500 plus government fees of about $54,677 — that’s close to $100,000 in total. Previously, buyers needed closer to $140,000 to cover both the deposit and Lenders Mortgage Insurance. This represents a massive saving and a real opportunity for Australians who have been waiting to enter the market.”
Spiro Kolokithas added now is the time to prepare. Historically in Australia, as interest rates fall, property prices tend to rise. With caps for first home buyers no longer stuck at $800,000, higher-end properties are suddenly within reach.
Some clients are already seeing borrowing power increases of $20,000 per rate cut, meaning with 3 rate cuts, borrowing power has increased by $60,000. When you add that to the Scheme changes, the impact is enormous.
“It’s important to start working with your mortgage broker now,” Spiro said. “Plan your strategy, get your documents in order, and be ready so that come 1 October, you can move quickly. At What If We Finance, we’ve been guiding first home buyers through opportunities like this for years.”
How your mortgage broker can help
At What If We Finance, we simplify the process to make it stress-free. We work with over fifty banks and lenders to compare options, identify the best solution, and help you benefit from these changes. Whether you’re purchasing in Melbourne, Sydney, Brisbane, or a regional town, our award-winning team will guide you through each step.
📞 Ready to take action? Contact us today and prepare for 1 October.
