Big News for First Home Buyers: Unlimited Places & Higher Price Caps
The Albanese government has announced it is bringing forward the planned changes to the First Home Guarantee Scheme. From 1 October 2025, the Australian Government is making the scheme more accessible for first home buyers. These changes are designed to make it easier for Australians to step into the property market with more choice and less stress.
Here’s what’s changing:
✅ Unlimited places – no more worrying about missing out when allocations run out.
✅ No income caps – higher-income buyers can now access the scheme.
✅ Higher property price caps – more realistic limits that reflect today’s market.
✅ Simpler regional access – the Regional First Home Buyer Guarantee will be rolled into the First Home Guarantee.
What this means for first home buyers
With the Home Guarantee Scheme, eligible buyers can purchase with as little as a 5% deposit, without needing Lenders Mortgage Insurance (LMI). That can mean getting into your home sooner, even if you haven’t saved a 20% deposit.
From October, you’ll also have wider property options thanks to the new price caps.
New Property Price Caps (from 1 October 2025)
Here’s a breakdown of the updated limits across Australia:
| Location | Current Cap | New Cap (from 1 Oct 2025) |
|---|---|---|
| NSW – capital city & regional centres | $900,000 | $1,500,000 |
| NSW – other | $750,000 | $800,000 |
| VIC – capital city & regional centres | $800,000 | $950,000 |
| VIC – other | $650,000 | $650,000 |
| QLD – capital city & regional centres | $700,000 | $1,000,000 |
| QLD – other | $550,000 | $700,000 |
| WA – capital city | $600,000 | $850,000 |
| WA – other | $450,000 | $600,000 |
| SA – capital city | $600,000 | $900,000 |
| SA – other | $450,000 | $500,000 |
| TAS – capital city | $600,000 | $700,000 |
| TAS – other | $450,000 | $550,000 |
| ACT | $750,000 | $1,000,000 |
| NT | $600,000 | $600,000 |
| Jervis Bay & Norfolk Island | $550,000 | $550,000 |
| Christmas Island & Cocos Islands | $400,000 | $400,000 |
*Regional centres include: NSW (Illawarra, Newcastle, Lake Macquarie), VIC (Geelong), QLD (Gold Coast, Sunshine Coast).
How to apply?
Navigating these changes can feel overwhelming — that’s where we come in. At Fox Mortgages, we can help you:
- Check your eligibility for the Home Guarantee Scheme.
- Explain the new caps and what they mean for your buying power.
- Compare lenders – there is a range of lenders involved in the scheme.
- Support you from pre-approval through to settlement.
Ready to explore your options?
These changes take effect 1 October 2025 — but it’s smart to start planning now. That way, you’ll be ready to move when the doors officially open.
📞 Contact Fox Mortgages today or book an appointment and let’s chat about how these updates could help you buy your first home sooner.