New Rules for First Home Buyers: What Changed on October 1

If you’re a first home buyer, some important national changes have just come into effect, and they could make it easier to get into the property market.

From October 1st, updates to the Home Guarantee Scheme have taken place across Australia. These changes expand who can access the scheme and make the pathway to home ownership more accessible for a wider group of buyers.

Here’s a breakdown of what’s changed and how it might affect you.

1. Unlimited Places Now Available

The scheme no longer has a cap on the number of places available. This means eligible buyers can apply at any time, rather than waiting for a new round of allocations to open up.

That flexibility can reduce pressure and give buyers more time to prepare.

2. Income Caps Removed

The income limits that previously restricted access to the scheme have now been removed.

This opens the door for more Australians to apply - including individuals and couples who may have earned just above the old thresholds. With no income cap in place, we’re likely to see more first home buyers enter the market, particularly in the entry-level price range.

3. Higher Property Price Caps

The maximum property prices allowed under the scheme have increased in capital cities and some regional areas. This brings the scheme more in line with current market values and allows buyers to consider a wider range of homes — not just units or entry-level stock.

4. Simpler Access for Regional Buyers

If you're buying in a regional area, there’s good news.

The Regional First Home Buyer Guarantee has now been rolled into the main First Home Guarantee, making access to the scheme simpler and more consistent for buyers outside major cities.

This streamlining helps level the playing field, especially for those looking to settle or move into regional communities.

5. Access to the Scheme: What It Means

The Home Guarantee Scheme allows eligible first home buyers to purchase a property with a deposit as low as 5%, without needing to pay Lenders Mortgage Insurance (LMI). Furthermore, single parents or legal guardians wanting to get back into the market only need a minimum 2% deposit. 

LMI is usually required when your deposit is less than 20% of the property’s value — and it can add thousands to your upfront costs. Being exempt can make a huge difference to your budget. 

The scheme works by having the government act as guarantor on the remaining portion of your deposit, which helps reduce one of the biggest barriers for many buyers.

What’s Next?

If you’ve looked into the scheme before and weren’t eligible, it may be worth reassessing your position under the new rules.

These updates are designed to give more first home buyers - including regional buyers and higher income earners - a fairer shot at entering the market.

If you're not sure where to start or what you might be eligible for, we’re happy to walk you through it.