Zero-Threshold Era for First Home Buyer

The single biggest change to first home buyer assistance in Australia is coming. On 1 October 2025, the government's Home Guarantee Scheme (HGS) undergoes a monumental transformation, effectively removing the traditional barriers to homeownership for a generation.

What’s Changing? The Old Rules Are Gone.

This is a complete overhaul designed to reflect the modern market. Forget what you knew about caps and limits:

No Place Limits: The scheme is now uncapped. Every single eligible first home buyer who has saved a 5% deposit can apply. No more missing out due to allocated spots running out.

No Income Caps: Eligibility is dramatically expanded. First home buyers with higher incomes can now access the scheme, opening the door for professionals and households previously excluded.

Higher Property Price Caps: Caps have been significantly increased to reflect where property prices actually are. For example, the cap in Sydney rises to $1,500,000, allowing buyers to purchase in more suburbs.

Simpler Regional Access: The Regional First Home Buyer Guarantee will be folded into the main First Home Guarantee, creating a single, streamlined scheme for all Australians.

How the Scheme Works: The Power of No LMI.

The core benefit remains: the government acts as a guarantor, allowing you to buy with a 5% deposit without paying Lenders Mortgage Insurance (LMI), plus having the same interest rates. This saves you tens of thousands of dollars upfront and gets you into your home years sooner.

Immediate Market Impact: What to Expect from Q4 2025

A Demand Supercycle: The combination of unlimited places, no income caps, and higher price caps will unleash a sustained wave of buyers. We anticipate a fierce surge in competition for properties under the new caps, particularly houses and apartments in the $800,000 to low $1M range in major cities.

Targeted Price Growth: Injecting vast, unlimited demand into a supply-constrained market will inevitably create upward pressure on prices. Predict strong capital growth in the "first home buyer" segment as competition intensifies.

Strategic Opportunity for All: This isn't just for first-timers. This surge will create a powerful "ripple-up" effect. The sellers of these homes (often upgraders) will be empowered to make their next move, stimulating activity across the entire market.

The MoreMore Finance Take:

This is an unprecedented demand-side stimulus. For our clients, it represents a once-in-a-lifetime opportunity to accelerate their home ownership plans. The market from October 2025 will be fast-moving and competitive. Preparation is not just advised; it is critical.

Your Action Plan: How to Apply from 1 October 2025

Check Eligibility: Use the official Home Guarantee Scheme Eligibility Tool (available on the Housing Australia website from 1 Oct 2025).

Check New Price Caps: See if your target property fits within the new caps for your area.

Contact a Participating Lender: As a preferred partner with over 30 participating lenders, MoreMore Finance is perfectly positioned to guide you. We’ll handle the application and submission to Housing Australia for pre-approval.

Find Your Home: Move with confidence and speed in a competitive market.

Don't get left behind. The market is about to move. Contact a MoreMore Finance broker today. Let's build your application strategy so you're ready to act on 1 October 2025.