From 1 October 2025, the Australian Government rolled out a major enhancement to the Home Guarantee Scheme, making it easier than ever for first home buyers to enter the property market. Whether you’re a young professional saving for your first home or a parent looking to help your children take that first step, this scheme could be a game-changer.
What’s new in the scheme?
The revamped First Home Guarantee offers:
- Unlimited places – no more annual caps
- No income limits – higher earners can now qualify
- Higher property price caps – reflecting current market conditions (e.g. Sydney cap increased from $900,000 to $1.5 million)
- Only a 5% deposit required – with no Lenders Mortgage Insurance (LMI)
- Simplified access – regional schemes consolidated into one streamlined process
This means eligible buyers can purchase a home with a smaller deposit and avoid the hefty cost of LMI, which can save tens of thousands of dollars
Why this matters for Evalesco clients
While many of you may not be first home buyers, this scheme presents a valuable opportunity for your children or younger family members. With rising property prices and cost-of-living pressures, saving a 20% deposit is often out of reach for young Australians. The new scheme removes that barrier.
If you’re a parent or grandparent, consider sharing this opportunity with your children. It could be the support they need to move from renting to owning.
Eligibility snapshot
To qualify, applicants must:
- The purchase must be for a new or existing home, or vacant land in NSW
- The property value must be within the threshold amounts
- The transfer must be for the whole property
- You must be an individual, (not a company or trust)
- You must be over 18
- You and your spouse or partner, must never have owned or co-owned residential property in Australia
- You and your spouse or partner, must never have previously received an exemption or concession under the scheme
- At least one of the first home buyers must be an Australian Citizen or permanent resident
- For new or existing homes, you must meet the requirements for living in the property (move into the home within 12 months after settlement, and live in the property as your principal place of residence for at least 12 continuous months
How to get started
Getting started will be as simple as booking in an appointment to discuss your eligibility and goals. Kristi will guide you through the scheme’s requirements, assess your borrowing capacity and help you apply with a participating lender.
Final thoughts
This scheme is a powerful tool for helping the next generation of Australians achieve home ownership. If you’re a parent, now is the time to start the conversation. And if you’re a first home buyer yourself, this could be your moment.
Let’s work together to help your family build wealth and security through property.
