Could your first home be closer than you think.
Buying your first home has always been one of the biggest financial milestones in life. For many Australians, the challenge has often been saving up a large deposit while navigating rising property prices. The Australian Government’s Home Guarantee Scheme has already helped thousands of first home buyers take that step sooner and from 1 October 2025, the Scheme is expanding in a big way.
Here’s what you need to know, and how these changes could help you build your dream home with Eight Homes.
What Is the Home Guarantee Scheme?
The Home Guarantee Scheme (HGS) is a government initiative designed to support eligible Australians in buying their first home with a deposit as little as 5%, without needing to pay the costly Lenders Mortgage Insurance (LMI)!
Until now, places under the Scheme were limited and subject to strict eligibility rules, but that’s about to change.
What’s Changing From 1 October 2025?
The Government has announced several major updates to make home ownership more accessible:
- No place limits: All eligible first home buyers with a 5% deposit can apply. The cap on the number of Scheme places will be removed.
- No income caps: Higher-income first home buyers will also be able to access the Scheme.
- Higher property price caps: The maximum property values have been lifted across most states and territories to better reflect current housing prices. For example:
- Victoria (capital city & Geelong): from $800,000 → $950,000
- Simpler access in regional areas: The separate Regional First Home Buyer Guarantee will be merged into the First Home Guarantee, creating one simpler pathway for buyers.
What This Means for First Home Buyers
These changes are designed to make the dream of home ownership a reality for more Australians. Key benefits include:
- Greater access: No need to compete for limited places.
- Flexibility: Higher income earners are no longer excluded.
- More choice: Increased property caps mean you can consider a wider range of homes, particularly in capital cities and growing regional hubs.
- Lower upfront costs: With just a 5% deposit and no LMI, you can save tens of thousands of dollars.
How to Apply After 1 October 2025
- Check your eligibility: Use the updated Home Guarantee Scheme Eligibility Tool: https://www.housingaustralia.gov.au/support-buy-home/eligibility-tool
- Confirm property price caps for your area.
- Contact a participating lender: Over 30 lenders across Australia offer access to the Scheme.
- Apply and get pre-approval: Your lender will submit your application to Housing Australia.
- Start your home journey: Once approved, you can begin the exciting process of finding or building your home.
Why Choose Eight Homes?
At Eight Homes, we know that affordability, quality, and confidence are key for first home buyers. That’s why we offer:
- 88 Build Time Promise: you’ll have certainty on when you’ll move in (only applicable for standard single storey plans up to 25 sq)
- BPI360 independent inspections: We ensure that every home meets high standards.
- Smart, functional home designs tailored to different budgets.
- Transparent contract process: with completion in as little as two weeks.
The 1 October 2025 Home Guarantee Scheme changes remove some of the biggest barriers to home ownership. Unlimited places, no income caps, and higher property price caps mean more Australians can enter the market sooner.
If you’ve been thinking about building your first home, now is the time to start planning. At Eight Homes, we’re here to guide you every step of the way, from deposit to design to move-in day.
Ready to explore your options? Contact Eight Homes today and let’s start building your future!