A New Era for First Home Buyers: What Changes from October 1 2025

From the 1st of October 2025, the Australian Government is expanding the Home Guarantee Scheme / First Home Guarantee. These changes are designed to broaden access, reduce barriers, and let more Australians enter the property market sooner.  Key changes include removing the annual cap on participants, abolishing income restrictions, and increasing price caps to over $1 million in some cities. Eligible first home buyers can now purchase a property with a 5% deposit, and the scheme removes the need for government-backed lenders mortgage insurance (LMI) for eligible participants.  Note: You will still need to cover other property costs such as stamp duty, legal fees, rates, and maintenance. These changes open real opportunities for more people to own property and provides more choice when looking to purchase. However, with more eligible buyers in the first homeowner space (particularly the sub $1m bracket) and no real increase in supply, we expect an increase in competition which could potentially lead to increased pressure on prices and could exacerbate affordability challenges in already competitive areas. If you're considering buying your first home in Brisbane, the October 2025 changes to the scheme open up real opportunities. The barrier of high deposits is being lowered, access is being widened, and the path to homeownership is becoming more achievable. But it’s not a guarantee—being well-prepared, realistic, and strategic will be critical.  If you own a property that may suit a first home buyer and have been thinking about selling, now might be the right time to do so. Whether you’re buying or selling, talk to trusted mortgage brokers, real estate professionals, and financial advisors early to position yourself to take advantage of this shift when it goes live.  

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