Unlimited Places & Higher Property Price Caps: Major Boost for First Home Buyers from 1 October 2025
Exciting news for Australians looking to buy their first home! The federal government has unveiled significant updates to the Home Guarantee Scheme, set to now take effect from 1 October 2025. This a revision from the previous announcement that came from the Albanese government post winning the federal election in May of this year that had the changes coming into effect from 01st January 2026.
This is a major boost to First Home Buyers with these updates making home ownership more accessible.
Let’s explore what’s changing and how it can help aspiring homeowners.
What’s New in the Home Guarantee Scheme?
- No More Place Limits
From 1 October 2025, the scheme will lift all caps on the number of government-backed guarantees. That means every eligible first home buyer who has a minimum 5% deposit can apply—no more waiting for an available spot.
- No Income Caps
Previously, applicants were required to fall under certain income thresholds. With the new changes, those income limits are removed, making the scheme accessible to a broader range of buyers.
- Significantly Higher Property Price Caps
The government has raised property value limits across states and territories to align with rising market prices. Here’s how the new price caps compare to the current ones:
| Location | Current Property Price Cap | Property Price Cap effective 1 October 2025 |
| VIC – capital city and regional centre | $800,000 | $950,000 |
| VIC – other | $650,000 | $650,000 |
- Streamlined Access in Regional Areas
The existing Regional First Home Buyer Guarantee will be phased out and replaced by the unified First Home Guarantee, simplifying the scheme across both urban and regional applicants.
Why These Updates Matter
- Greater Accessibility: With unlimited places and no income caps, more Australians, regardless of their income or application timing, can qualify.
- Adapting to Market Realities: The raised price thresholds reflect current property values, especially in metro and high-demand areas.
- Equity and Simplicity: Merging regional and metropolitan access under one guarantee ensures fairer and more consistent treatment across the board.
How to Apply After 1 October 2025
- Check Your Eligibility – A refreshed Eligibility Tool will be available from 1 October 2025. In the meantime, review the updated criteria to get a head start.
- Verify the Price Cap – Use the Postcode Search Tool to confirm the new cap applicable to your chosen location. Always double-check with your lender.
- Contact a Participating Lender – A new application through one of over 30 participating lenders (including major and regional banks) is required. They’ll process your application and submit it to Housing Australia.
- Find a Home & Apply for Pre-approval – Once your new home is secured, whether that be an apartment, land to build a home or a house and land package, the lender will guide you through securing pre-approval and meeting documentation requirements.
Looking Ahead
These changes, effective from 1 October 2025, represent a major policy shift aimed at increasing home ownership opportunities across Australia. Whether you’re just starting to save or ready to buy now, these changes are designed to support you, no matter your background or location.
Visit Housing Australia to find out more and check your eligibility.
Read the media release here