Home Guarantee Scheme in Australia opens up with unlimited places and higher property price caps
If you’re a prospective first home buyer in Australia, big changes are coming your way. Starting 1 October 2025, the Australian Government is expanding its Home Guarantee Scheme by removing quota limits (i.e. unlimited places) and increasing property price caps in many areas. These adjustments aim to make it easier for more Australians to enter the housing market with as little as a 5% deposit—without paying for Lenders Mortgage Insurance.
In this article, you’ll learn what’s changing, how it affects first home buyers, and how you can prepare to take advantage of the new rules.
What Exactly Is Changing on 1 October 2025
The key changes to the Home Guarantee Scheme effective 1 October 2025 are:
Unlimited places: No annual cap on the number of guarantees available. Every eligible first home buyer with a 5% deposit can apply. Housing Australia
No income caps: Previously, some buyers with higher incomes were excluded. That barrier will be removed. Housing Australia
Higher property price caps: Because property values have shifted, the allowable house price limit will increase in many regions. Housing Australia
Simplified regional access: The “Regional First Home Buyer Guarantee” will be folded into the standard First Home Guarantee, making it easier to apply in regional areas. Housing Australia
These updates are part of the Government’s pledge to help “all Australian first home buyers … buy their first home sooner.” Housing Australia
New Property Price Caps by State & Region
Below is a summary of the new property price caps starting 1 October 2025 (capital city & regional centres vs. other areas): Housing Australia
| State / Territory | Current Cap (capital / regional) | New Cap (1 Oct 2025) | Other / regional areas (current → new) |
|---|---|---|---|
| NSW | $900,000 → $1,500,000 | — | Other: $750,000 → $800,000 |
| VIC | $800,000 → $950,000 | — | Other: $650,000 (unchanged) |
| QLD | $700,000 → $1,000,000 | — | Other: $550,000 → $700,000 |
| WA | $600,000 → $850,000 | — | Other: $450,000 → $600,000 |
| SA | $600,000 → $900,000 | — | Other: $450,000 → $500,000 |
| TAS | $600,000 → $700,000 | — | Other: $450,000 → $550,000 |
| ACT | N/A → $1,000,000 | — | — |
| NT | $600,000 (unchanged) | — | — |
| Jervis Bay / Norfolk Islands | $550,000 (unchanged) | — | — |
These higher caps reflect the rising property prices and aim to give first-time buyers access to more market options.
Who Stands to Benefit?
1. First Home Buyers with Modest Savings
With just a 5% deposit (plus any relevant fees), more buyers can enter the market without being blocked out by limited spots.
2. Buyers in High-Price Areas
Because the property price caps are lifted, aspirational buyers in major cities may now qualify for more expensive properties that were previously out of reach under stricter caps.
3. Those with Higher Incomes
Removing income caps opens the door for more families or individuals whose earnings exceed previous thresholds but still struggle with deposit requirements.
4. Regional Applicants
By merging the regional guarantee into the general scheme, regional buyers can navigate a simpler application process.
How to Apply & What You Should Do
Check eligibility — Use the updated Home Guarantee Scheme Eligibility Tool (available from 1 October 2025). Housing Australia
Verify your area’s property cap — Compare the current cap versus the new one in your locale.
Choose a participating lender — Over 30 lenders (including regional, customer-owned, and major banks) participate. Housing Australia
Submit your application — Lenders will handle pre-approval and submit eligible applications to Housing Australia.
House hunt & finalize
Implications & Tips for Prospective Buyers
Act in advance — Though changes take effect 1 October 2025, you can start preparing now (e.g. saving deposit, checking credit).
Do the math — Even with a 5% deposit, assess total loan repayments, interest, and mortgage insurance (if any).
Monitor lender policies — Some lenders may adjust internal rules in response to the scheme expansion.
Stay informed — The Housing Australia site will publish FAQs and further clarifications. Housing Australia
The expansion of the Home Guarantee Scheme starting 1 October 2025—unlimited places, no income caps, and higher property price caps—marks a significant opportunity for more Australians to step onto the property ladder. Whether you’re saving for your first home or waiting for the right moment, these changes merit careful attention. Prepare early, stay informed, and talk to lenders about your eligibility once the new scheme takes effect.
