Big news for first home buyers in Australia, starting 1 October 2025, the Federal Government is rolling out major updates to the Home Guarantee Scheme, making it significantly easier for everyday Australians to step into the property market. Meaning more opportunities, less financial pressure, and a faster path to home ownership.
What’s Changing?
Under the new scheme, eligible first home buyers can now purchase a property with just a 5% deposit, without needing to pay Lenders Mortgage Insurance (LMI). This is a gamechanger for many buyers who’ve been saving for years, trying to reach the traditional 20% deposit threshold. With this change, the upfront cost of buying a home is dramatically reduced, making it possible to enter the market sooner.
Another major shift is the removal of income caps. Previously, buyers had to fall within certain income brackets to qualify. Now, the scheme is open to all income levels, meaning more Australians, especially dual-income households, can take advantage of the support.
Even better, the scheme is no longer limited by a set number of places. That means every eligible buyer can apply, without worrying about missing out due to high demand or timing.
To reflect current market conditions, property price caps have also been increased. In Sydney, for example, the cap has risen from $900,000 to $1.5 million, allowing buyers to consider a wider range of homes, including those in more central or desirable locations.
What This Means for You
If you’ve been holding off on buying your first home because of deposit requirements, income restrictions, or limited options, this is your moment. Morton’s experienced team and trusted partners, Xin Mortgage are here to guide you through the new eligibility criteria and help you find a property that fits your lifestyle and budget.
Whether you’re looking for a sleek apartment in the city or a family home in the suburbs, these changes mean you can act with more confidence and less financial strain.
Our experienced team is ready to guide you through every step of the process. From understanding your eligibility under the new scheme to finding the right property and securing a successful purchase. With our local expertise and trusted partners like Xin Mortgage, we’re committed to making your first home journey as smooth and confident as possible.
For full eligibility details, application steps, and official updates, visit the Australian Government’s Housing Australia website or read the official media release from the Prime Minister’s office