Australia’s Home Guarantee Scheme for first-home buyers is getting a major boost from 1 October 2025. The government is removing place and income caps and raising property price caps to match today’s market. In practice, this means unlimited guarantees for all eligible first-home buyers and higher thresholds in each region. For example, Sydney’s cap jumps from $900,000 to $1.5 million, Brisbane to $1.0 million, and Adelaide to $900,000. Under the new rules, about two-thirds (63%) of all suburbs now fall under the eligible caps, up from roughly one-third before, giving first-home buyers many more suburb options.
- Unlimited places, no income test: Any Australian with a 5% deposit can apply.
- Higher price caps: Major cities’ thresholds are lifted (e.g. NSW $1.5 M, QLD $1.0 M, SA $0.9 M).
- Simpler regional access: The Regional Buyer guarantee is folded into the First Home program for one streamlined process.
- More qualifying suburbs: Over half of house markets (51.6%) nationally now qualify under the new caps – nearly double the choices for buyers.
These changes unlock new suburbs and housing stock for buyers previously priced out of the market. For first-home buyers, this means you can look beyond outer belts into middle suburbs that were off-limits before. Investors also see more entry points in the market. However, more buyers chasing these homes means competition will rise. Recent data shows national house prices are already climbing (up 1.8% in the latest quarter) and new listings jumped 9.4% in August. In other words, demand is building and prices may follow. Acting early – with a clear strategy – will help you secure a property before conditions heat up.
City-by-city highlights
- Sydney (NSW): Cap up to $1.5 M. This $600K lift means many inner-ring suburbs and quality houses become achievable for first-home buyers.
- Melbourne (VIC): Cap $950K (up $150K). More middle-market homes are now in range, giving buyers some extra breathing room.
- Brisbane (QLD): Cap $1.0 M. Almost every Brisbane suburb now qualifies (97.5% of suburbs, especially units), marking strong growth potential for both owner-occupiers and investors.
- Adelaide (SA): Cap $900K. Biggest jump for house markets: 46.6% of Adelaide suburbs now qualify (up from just 2.9% before). This truly opens up Adelaide for first buyers.
- Perth (WA): Cap $850K. Up from $600K, many more Perth homes are now eligible.
Why use a buyer’s agent now?
With these market shifts, working with expert buyer’s agents can give you a winning edge. At Key2Dreamz, our agents have local market know-how and strong networks. We can target quality standalone houses and off-market deals that fit the new caps. We handle open home scouting, valuation checks and negotiations on your behalf – so you never miss a good property. Key2Dreamz agents also keep you calm at auction and help craft winning offers.
Ready to move fast? We at Key2Dreamz are known for providing expert advice and an inside track on the new Home Guarantee Scheme. Call us on +61 4392 60917 or book a free consultation today. You will be fully guided by our team through the changes and helped to take full advantage of this opportunity.