If you’ve been finding it challenging in the approach to buying your first home, the latest changes might be welcome news. From 1 October 2025, the Australian Government introduced some major changes to its home ownership support programs. These updates aim to make it easier for first home buyers to get into the market with more confidence.
A more flexible deposit scheme
The Government’s 5% Deposit Scheme, also known as the First Home Guarantee, is now significantly more attainable. This program allows eligible first-time buyers to purchase a home with just a 5 per cent deposit. The government guarantees the remaining amount, so you don’t have to pay lenders’ mortgage insurance, which is something that usually adds thousands of dollars to your upfront costs.
Previously, this scheme had some strict limitations. There were income restrictions, price caps that excluded homes in many areas, and a limited number of places available each year.
As of October 1, those income restrictions have been removed entirely. It no longer matters how much you earn; you can still apply. The price caps for properties have also been increased across the country to reflect current market values. This means the home you were eyeing last year but couldn’t afford under the scheme, may now be within reach.
There is also no longer a cap on the number of places available. In the past, thousands of buyers missed out each year because the scheme had a set number of spots. Now, anyone who qualifies can apply at any time. There’s no need to rush or compete for a place.
If you’re buying in a regional area, you’ll also benefit from the fact that the separate Regional First Home Buyer Guarantee has been folded into the main scheme. This streamlines the process and ensures that regional buyers have equal access to support under one simplified program.
A new path through the Help to Buy Program
Alongside the deposit scheme, the government is also introducing a shared equity initiative called Help to Buy. This program is designed for buyers who are earning a reasonable income but struggling to save a deposit large enough to get into the market.
Under this scheme, the government becomes a co-owner in your home, contributing up to 30 per cent of the purchase price for existing homes and up to 40 per cent for new builds. In return, you need only a 2 per cent deposit and you’ll borrow less from the bank, which means lower monthly repayments.
You still own and live in the property just as you would normally, but the government will hold a share in it. Over time, you can choose to buy back that share, either gradually or all at once, or pay it back when you eventually sell.
This program does come with eligibility requirements, including income limits and property price caps, although these have recently been adjusted to allow more people to apply. Applications are expected to open later in 2025, so if this suits your situation, start preparing your paperwork.
What this means for you
Put simply, buying your first home just became more realistic for many Australians. With the removal of some income caps and the increase in property price thresholds, more people can now access support. If you were previously locked out of the market due to high property prices or limited scheme places, you may now find yourself eligible.
While these schemes reduce upfront costs, you’ll still need to meet your lender’s borrowing criteria. This means showing you can comfortably afford the repayments, even after interest rates and living costs are factored in. The schemes are designed to support you into home ownership, but they are not a shortcut around responsible lending.
Buying your first home is still a big milestone, but with these new supports in place, it may no longer feel out of reach. If you’re ready to take the next step, there has never been a better time to start the conversation.
