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Amplified Group Lending Solutions

Big Changes Coming for First-Home Buyers: First Home Guarantee Expands from 1 October 2025

28/8/2025

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The Federal Government’s First Home Guarantee (FHBG) has already helped tens of thousands of first-home buyers purchase with as little as a 5% deposit, without needing to pay LMI. And now, from 1 October 2025, the scheme is expanding sooner than expected, making home ownership even more accessible.
What Is the First Home Guarantee?

The FHBG is part of the Home Guarantee Scheme. It allows eligible buyers to purchase their first home with a 5% deposit while the government provides a guarantee to the lender for up to 15% of the loan.

This guarantee means you don’t need to pay LMI — often a saving of $10,000–$30,000, depending on the property value.
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In the last financial year alone, around one in three first-home buyers used the FHBG to enter the market.

What’s Changing from 1 October 2025?
From October, the scheme will become much more generous:
  • No income caps → previously, singles had to earn under $125k and couples under $200k. From October, there will be no income limits.
  • Higher property price caps → recognising the rise in property values, the maximum eligible purchase prices are increasing.
    • Perth: up to $850k
    • Sydney: up to $1.5M
    • Melbourne: up to $950k
    • Brisbane: up to $1M
    • (and higher limits across other states and regions too)
  • Unlimited places → there will no longer be a yearly cap on the number of buyers who can access the scheme.
  • Simplified structure → the Regional First Home Buyer Guarantee will be merged into the main FHBG, streamlining access.

Why the Earlier Start Matters
The changes were originally planned for January 2026, but the government has brought them forward to 1 October 2025.
That means:
  • Thousands more buyers will be able to enter the market sooner.
  • Analysts estimate up to 70,000 first-home buyers could take advantage in the first wave.
  • With increased demand, there is a possibility of short-term pressure on house prices, so timing and preparation are important.

What This Means for You
The expanded FHBG could make a huge difference if you’re looking to buy your first home:
  • Lower savings hurdle – buy with a 5% deposit.
  • Save on costs – no LMI.
  • More choice – higher property caps give you access to homes in more areas.
  • Broader eligibility – no income test means more Australians can apply.
But with higher demand expected, being prepared early will give you the best chance to secure your place.

Tips to Get Ready
✔️ Speak to an Amplified broker early – we can help you understand your borrowing capacity and check eligibility.
✔️ Organise pre-approval – so you’re ready to act quickly.
✔️ Plan for upfront costs – such as stamp duty, legal fees, and moving expenses.
✔️ Stay informed – keep an eye on the new property caps in your area.

Final Thoughts
The First Home Guarantee has already helped thousands of Australians get into their first home sooner. From 1 October 2025, it’s set to open the door even wider.

If buying your first home is on the horizon, now’s the time to start planning so you’re ready to take advantage of the changes when they kick in.

📲 Want to know if you’ll qualify under the new rules? Get in touch — we’d love to guide you through the process.
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  • About Us
    • Our Team
    • The Lending Process
    • Our Panel of Lenders
    • Privacy Policy
    • Complaints Process
  • Home Loans
    • First Home Buyers
    • Budget Planner
  • Refinance
  • Invest
  • Business Loans
  • Credit Impairment
  • Resources
  • Contact