Income caps will be removed entirely, meaning buyers with higher incomes are eligible for the scheme, broadening access significantly.Currently, there are income eligibility thresholds of $125,000 for individuals and $200,000 combined for couples.

The price limits on eligible homes under the scheme will increase substantially.

Currently, the First Home Guarantee Scheme is capped to 50,000 places per year. From 1 October 2025, there will be no limit—any eligible first home buyer with a minimum 5% deposit can access the guarantee.

Minimum Deposit: Genuine savings of 5% of the property value plus fees is still required to qualify.

‍Government Guarantee: Up to 15% of the loan is guaranteed by the government, allowing applicants to avoid Lenders Mortgage Insurance (LMI) and get a lower interest rate from the participating lender. Once your loan is reduced to 80% of the value of the property, the Government Guarantee can be removed.

‍Individual Eligibility: The home buyer must be an Australian citizen, permanent resident or a New Zealand Citizen on a 444 visa who is over the age of 18 and has not owned a property in Australia in the last 10 years.

‍Property Purpose: The property must be for the purpose of living in, this scheme is not eligible for investment properties. Purchasers must intent to move into the property within 6 months of the settlement date.