Home Guarantee Scheme Expansion 2025

First Home Buyers
Written By Renee Hewlett-Robins

TThe highly anticipated expansion of the Home Guarantee Scheme (HGS) has been brought forward and will now begin on 1 October 2025 — with new, higher property price caps announced.

This change is set to make home ownership more achievable for first-home buyers across Australia, including buyers right here in Wollongong and the Illawarra.

What’s changing?

The updated scheme comes with several major changes:

  • Unlimited places – All eligible first-home buyers with a 5% deposit can apply.

  • No income caps – Higher income earners can now access the scheme.

  • Simpler regional access – The Regional First Home Buyer Guarantee will be replaced by the First Home Guarantee.

  • Higher property price caps – Increased thresholds reflect today’s property market.

New property price caps

Some of the biggest changes include:

  • NSW (Sydney & regional centres): $900k → $1.5m

  • VIC (Melbourne & regional centres): $800k → $950k

  • QLD (Brisbane & regional centres): $700k → $1m

  • ACT: $750k → $1m

  • SA (Adelaide): $600k → $900k

  • WA (Perth): $600k → $850k

The full list of updated caps is available on the Housing Australia website.

Why this matters for buyers

With deposit hurdles eased, the government estimates this expansion will:

  • Reduce deposit saving time for first-home buyers.

  • Help buyers avoid up to $42,000 in Lenders’ Mortgage Insurance (LMI).

  • Allow buyers to pay into their own loan sooner, rather than spending more years renting.

For many in Wollongong and the Illawarra, where property prices have steadily increased, the new caps will make entering the market much more achievable.

Ready to take advantage of the Scheme?

If you’re planning to buy your first home, this expansion could be the opportunity you’ve been waiting for.

As a trusted mortgage broker Wollongong buyers rely on, we can help you:

  • Work out if you’re eligible for the Scheme.

  • Understand how much you can borrow.

  • Get pre-approval in place so you’re ready to act this spring.

Get in touch today to see how the Home Guarantee Scheme changes could help you step into the property market sooner.

Renee Hewlett-Robins
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