First Home Guarantee Scheme Update July 2025

More First Home Buyers Set to Benefit from Major Government Scheme Changes

There’s good news on the horizon for first home buyers. The Federal Government has announced some major updates to the First Home Guarantee Scheme that are set to make home ownership more accessible for many Australians.

What’s Changing from 1 January 2026?

From the start of 2026, the First Home Guarantee Scheme will be significantly expanded. The changes include:

• The removal of income caps, meaning more buyers will be eligible
• Increased property price caps, allowing access to homes in more areas
• Greater accessibility to support more first-time buyers

These changes are designed to remove common barriers for aspiring homeowners and make it easier for Australians to take their first step into the property market.

What Stays the Same for Now?

While these changes are promising, current eligibility rules will stay in place until the end of 2025:

• Income caps remain at $125,000 for singles and $200,000 for couples
• Regional property price caps continue to apply (e.g., $750,000 in regional NSW)

More Support for Regional and Single-Parent Buyers

The government has also pledged an additional $4.9 million in funding over four years to continue two important programs:

• The Regional Home Buyer Guarantee
• The Family Home Guarantee

These schemes assist regional and single-parent first home buyers by reducing deposit requirements and supporting them into home ownership sooner.

Shared Equity Scheme to Launch Soon

Another initiative on the way is the Shared Equity Scheme. This program is designed for low- to middle-income earners who may only have a 2% deposit. Under this scheme, the government may co-purchase up to 40% of the property with eligible buyers. A launch date hasn’t been confirmed yet, but it’s expected to roll out in the near future.

What Can You Do to Prepare?

Even though the new rules won’t kick in until 2026, there are smart steps you can take now:

1. Start Saving Your Deposit
   Depending on the scheme, you may only need 2–5%. Starting early gives you more flexibility when the time comes.
2. Complete Your Tax Return
   Your income eligibility is based on your ATO Notice of Assessment, so lodging your return is essential.
3. Check Your Identification
   You’ll need physical copies of your ID — such as a driver’s licence, Medicare card, passport or birth certificate — to apply.
4. Understand Your Borrowing Power
   Online calculators can be misleading. They often don’t factor in how different lenders assess your income and financial commitments. Speaking with a broker will give you a clear picture based on real-world lending policies.

We’re Here to Help

Buying your first home is a major milestone, and it's perfectly normal to feel a little unsure about where to start. At Central Coast Mortgages, we’re here to guide you with care, clarity, and the kind of support you deserve.

If you’re planning to purchase your first home in the next few years, now is the perfect time to prepare.

Have questions or want to get started?

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