Breaking through the savings barrier can feel like a towering challenge for aspiring homeowners. But starting 1 October 2025, the Australian Government is transforming access to homeownership with an expanded Home Guarantee Scheme (HGS). Here’s what you need to know about the exciting updates and how they can work for you.
What’s Changing, And Why It Matters
1. No More Place Limits
The Scheme will lift the annual cap on the number of participants. Previously, only a limited number of first-home buyers could qualify. Now, all eligible applicants can apply.
2. Income Caps Removed
Gone are the old income thresholds (previously $125,000 for singles, $200,000 for couples). Whether you’re early in your career or earning more than the previous income cap, you’re now eligible.
3. Higher Property Price Caps
To reflect soaring home values, the Government is raising price caps across Australia. Here’s a table that shows the current cap and the new cap, starting 1 October 2025:
Tips for First-Home Buyers
- Plan Ahead Now. Don’t delay: the changes start 1 October, and applying earlier doesn’t benefit you.
- Budget Carefully. Calculate all costs (deposit, stamp duty, insurer, legal) to ensure clarity.
- Talk to a Mortgage Broker. They can help you confirm eligibility, explain loan options, and guide you through the application.
- Think Long-Term. Buying is just the start. Ensure you’re financially comfortable with repayments, interest rate shifts, and unexpected costs.
The October 2025 expansion of the Home Guarantee Scheme marks a major win for first-home buyers. Removing barriers, expanding eligibility, and reflecting today’s property markets. But buyers must tread wisely amidst concerns over price impacts and tight supply.
Goodwill Finance can help you step onto the property ladder with confidence, clarity, and peace of mind. Contact us today so we can guide you through this journey, from first-time home buyer to proud homeowner.
