From 1 October 2025, the Federal Government will remove limits on the number of guarantees available under the Home Guarantee Scheme, raise property price caps and abolish income caps for eligible borrowers. The changes mean that all first home buyers with a deposit of at least 5% will be able to access the scheme.
“The government’s expanded HGS aims to get eligible first home buyers to enter the property market sooner. With increasing property prices, our members see many prospective first home buyers unable to take their first step on the property ladder,” Anja Pannek, CEO of the MFAA commented.
First home buyers overwhelmingly turn to mortgage brokers as trusted professionals when looking to purchase their first home. Housing Australia data shows that mortgage brokers already facilitate the vast majority of scheme places, with 77% of Home Guarantee Scheme loans in FY2024–25 originated through brokers.
The MFAA has been working with the Housing Minister’s office and Housing Australia to make sure all brokers are equipped with the knowledge they need to understand how the expanded scheme operates so they can assist their clients.
“Importantly, for brokers who have already been accessing the scheme on behalf of their clients, the process hasn’t changed. What will change from October is that there will be unlimited places and increased price caps,” Ms Pannek said.
After a consultation process, the Federal Government will also direct Housing Australia to promote the diversity of lenders who offer the scheme, including smaller, customer-owned and regional banks.
Ms Pannek said: “We welcome the broadening of lenders, including smaller, customer-owned and regional banks. It’s crucial that the scheme operates with lenders who partner with mortgage brokers. This will ensure that first home buyers get the expert guidance and support they need through their home financing journey.”
What brokers need to know about the Home Guarantee Scheme changes from 1 October 2025
• No place limits: all Australian first home buyers who have saved a 5% deposit can apply.
• No income caps: first home buyers with higher incomes can access the scheme.
• Higher property price caps: to help home buyers where property prices have increased.
• Simpler access in regional areas: Regional First Home Buyer Guarantee will be replaced by the First Home Guarantee.
What brokers need to know about property price cap increases – from 1 October 2025
NSW – capital city and regional centre – rises from $900,000 to $1,500,000
NSW – other – rises from $750,000 to $800,000
VIC – capital city and regional centre – rises from $800,000 to $950,000
VIC – other – $650,000, no change
QLD – capital city and regional centre – rises from $700,000 to $1,000,000
QLD – other – rises from $550,000 to $700,000
WA – capital city – rises from $600,000 to $850,000
WA – other – rises from $450,000 to $600,000
SA – capital city – rises $600,000 to $900,000
SA – other – rises from $450,000 to $500,000
TAS – capital city – rises from $600,000 to $700,000
TAS – other – rises from $450,000 to $550,000
ACT – rises from $750,000 to $1,000,000
NT – $600,000, no change
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