Expansion of the Home Guarantee Scheme

If you haven’t kept up with the latest real estate news, you might be surprised to learn that there has been a bit of buzz lately in the property market. As of the 1st of October 2025, the government has made some exciting adjustments to the Home Guarantee Scheme. The changes made are about to make the home market a lot more accessible for first-time buyers. Whether you are in the market for a new home or looking to sell sometime soon, the changes could have an impact on your chances of success. We at Established Property have put together a handy “cheat sheet” to help you understand some of the fundamental shifts.

No Place Limits

This change makes the home market much more accessible. Any eligible first home buyer who has saved a 5% deposit can now apply for the scheme. Previously, the scheme was limited to 50,000 places annually (spread across FHBG, RFHBG, and FHG). If you are looking to buy, this may offer you an opportunity that was previously out of your reach.

For sellers, this means the market is about to heat up. More potential buyers mean greater competition and potential for even higher sales prices.

No Income Caps

Previously, the scheme was only accessible to those within a certain income limit. Those with a higher household income were restricted from taking advantage of the benefit. Under the previous arrangement, singles earning over $125,000, and couples over $200,000, were unable to apply. Under the new changes, the income cap has been removed. As of October 2025, there is no longer a limit on income and the number of places available.

Higher Property Price Caps 

Under the previous terms, the price caps on property were much lower. This made it very difficult in areas where the median price was much higher. As of October 2025, the property price caps have significantly increased. In high demand areas such as Sydney, caps are as high as $1.5 million. Locally in Melbourne, the cap has increased to $950,000, providing greater flexibility for buyers across the city and surrounding growth corridors. This is especially helpful for those looking for a family home in a well established suburb, where prices often exceeded previous limits.

Simpler Access for Regional Buyers

Previously, there was a separate scheme available for those in regional areas. It could be hard to access as places were limited. The new program has expanded to include regional areas, replacing the previous Regional First Home Buyer Guarantee (RFHBG).

The Bottom Line

There are a few more changes and it is worth diving into things a bit deeper for yourself. The big takeaway? The scheme is expanding and buying a home will be much more accessible. Whether you are buying or selling and looking to get a handle on the new changes, Established Property can help. As one of the best real estate agents in Point Cook, we can help make the dream of owning your first home a reality.