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The federal government’s expanded Home Guarantee Scheme, effective 1 October 2025, offers greater access to home ownership for first home buyers across Australia. By removing income and location restrictions and increasing property price caps, eligible buyers can purchase homes with a 5% deposit while avoiding lenders mortgage insurance (LMI). This reform significantly broadens the scheme’s reach and makes affordable housing more accessible.
Understanding the changes to the home guarantee scheme
Income caps and place eligibility limits have been removed. Property price caps increased substantially: Sydney’s from $900,000 to $1.5 million; South East Queensland’s to $1 million; Adelaide’s to $900,000. Consequently, 63.1% of suburbs nationally now qualify, nearly doubling access compared to before.
What the scheme offers to first home buyers
Buyers can secure a mortgage with a 5% deposit guaranteed by the government, eliminating the need for LMI and lowering upfront costs. Eligibility requires genuine savings over three months and meeting lender serviceability criteria.
How the changes improve affordability and accessibility
The expanded scheme supports younger and lower-income Australians, especially those without parental financial backing. Economist Kaytlin Ezzy notes, “Since the caps were last revised in 2022, values across the mid-sized capitals have grown significantly, which has seen first home buyers reliant on the scheme to purchase a house essentially priced out. The new price caps are more in line with each region’s median values. This will create a more equitable starting point and provide more options for those looking to get on the property ladder, particularly those who don’t have parental support.”
How Attain Loans can help first home buyers
Attain Loans provides expert support tailored to the expanded scheme, helping clients assess eligibility, find suitable loans, and navigate applications from start to finish.
With more opportunities than ever, now is the perfect time to explore your first home buyer loan options. Contact Attain Loans today to start your home ownership journey.
Further questions
Who is eligible for the expanded Home Guarantee Scheme?
How much can I borrow under the new price caps?
What savings do I need to qualify for the scheme?
Does the scheme eliminate lenders mortgage insurance (LMI)?
How can Attain Loans assist me with this scheme?
This is general information only and is subject to change at any given time. Your complete financial situation will need to be assessed before acceptance of any proposal or product.
