Big Changes to the First Home Buyer Guarantee – Starting October 1

For years, saving a deposit has been one of the biggest hurdles for first-home buyers. But from 1 October 2025, the First Home Buyer Guarantee is being reshaped in ways that could make owning your first property far more achievable.

The most important update? Unlimited places will now be available under the scheme. Previously, the Guarantee was capped, meaning many eligible buyers missed out. With this change, the door is open to more Australians to buy sooner without the pressure of needing a 20% deposit.

In addition, property price caps are increasing, reflecting rising property values across the country. This gives first home buyers more realistic options in their local markets, rather than having to compromise on location or property type.

For many, this update could mean tens of thousands in savings, thanks to avoiding Lenders Mortgage Insurance (LMI) – a cost that typically applies when you have less than a 20% deposit. Under the Guarantee, eligible buyers can purchase with as little as 5% deposit, making the pathway to ownership faster and more affordable.

What this means for you

If you’ve been sitting on the sidelines or felt priced out of the market, these changes could be the opportunity you’ve been waiting for. However, competition will still be strong, and preparation is key. Understanding your eligibility, your borrowing power, and the right loan structures now will put you in the best position to move quickly when the scheme opens.

Simmons Livingstone can help you prepare for the changes to the First Home Buyer Guarantee. Contact us today to confirm your eligibility and put your buying strategy in place on 1800 618 800 or via email at admin@simmonslivingstone.com.au.