Today marks a milestone: from 1 October 2025, the Australian Government’s Home Guarantee Scheme gets a major reboot, opening up new opportunities for aspiring homeowners. Gone are many of the old restrictions — more people can now step into the property market sooner, with a lower deposit and fewer barriers.

What is the Home Guarantee Scheme?
In essence, the Home Guarantee Scheme helps eligible home buyers enter the market with a smaller deposit by having the Government act as a guarantor to the lender. This reduces risk for the lender, which means the buyer can avoid costly Lenders Mortgage Insurance (LMI) even with a deposit as low as 5%.
Before today, the Scheme had several limits — income caps, a capped number of places each year, and relatively low property price thresholds. But the changes coming into effect now are significant.

What’s Changing on 1 October 2025
Here are the key upgrades to the Scheme:






Feature


Previous Rules


New Rules (from 1 Oct)






Number of places (quota)


Annual cap / limited slots


Unlimited places — no more caps on how many can access it (Housing Australia)




Income eligibility


Income limits (e.g. ~$125,000 individual, ~$200,000 joint)


No income caps — higher earners can also qualify (Housing Australia)




Property price caps


Relatively modest maximums, varying by state/region


Higher price caps to reflect modern market values (Housing Australia)




Regional scheme complexity


Separate Regional First Home Buyer Guarantee in some cases


Merged/simplified access — regional buyers use the same pathway (Housing Australia)






For example, in Victoria, the cap for homes in capital city or regional centres moves from ~$800,000 to ~$950,000.

Why This Matters For You as a Home Buyer

 	
These changes are more than just numbers — they shift the playing field:
 	
Lower Upfront Barrier: With just a 5% deposit required, you don’t need to wait years to build a 20% deposit.
 	
More Choice: Higher price caps open up more suburbs and property types that were previously out of reach.
 	
No More Exclusion by Income: Buyers who were previously disqualified by income thresholds now have access.
 	
Avoid LMI: By reducing or removing the need for Lenders Mortgage Insurance, it frees up funds for other costs (stamp duty, legal, fit-out).
 	
Faster Market Entry: The removal of place caps means you won’t be turned away simply because the quota is full.
 	
Taken together, these changes can significantly shorten the path to home ownership for many Australians.

What You Can Do Next

 	
If you're considering buying your first home (or using a low deposit), here are the steps to take now:
 	
Check your eligibility. Use the official eligibility tools available via Housing Australia.
 	
Understand your local price cap. The new caps vary by postcode/region — make sure your target property would qualify.
 	
Talk to a participating lender / mortgage broker. Not all lenders may offer the Scheme immediately.
 	
Get pre-approval. With more people able to access the Scheme, being “loan-ready” gives you an edge.
 	
Plan your budget carefully. Factor in all costs — not just the deposit and repayments.

To learn more get in touch with Andy, Accolade's Estate Manager who be able to talk you through the homebuying process on 1300 268 629.