Crunching the numbers

Know the facts before taking the plunge with first- home buyer's schemes.

- PAM WALKLEY

The expanded Home Guarantee Scheme (HGS), as of October 1, 2025, aims to support all Australian first-home buyers by removing place limits and income caps, and increasing property price limits. This means an unlimited number of eligible buyers could benefit, says Housing Australia.

The former version of the scheme has significant runs on the board, supporting one in three first-home buyers in the 2023-24 financial year, with 230,000 property purchasers supported overall, according to Housing Australia.

But it's not all upside. While the HGS scheme may help you buy your first home sooner, you need to keep in mind that a smaller deposit means a bigger loan. And a bigger loan means bigger loan repayments, as well as higher total interest payments over the life of the loan.

The changes to the HGS scheme are:

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. The new limits fall under the median house values for every capital city, according to Cotality data at September 30 - except for Canberra and Perth - and range up to $1.5 million for Sydney, Illawarra, Newcastle and Lake Macquarie in NSW.

Simpler access in regional areas The Regional First Home Buyer Guarantee will be replaced by the First Home Guarantee.

The scheme is available through 30 participating lenders across Australia who will submit eligible applications to Housing Australia and process pre-approvals.