🏡 First Home Buyers: New Rules Make It Easier to Get Into the Market
For many Australians, buying their first home can feel like a distant dream. Saving a huge deposit, paying stamp duty, and facing rising property prices has often been overwhelming. But from 1 October 2025, new rules under the First Home Guarantee (part of the Home Guarantee Scheme) have made that dream far more achievable.
If you’re a first-home buyer, here’s what you need to know.
💡 The Key Changes From 1 October 2025
The government has overhauled the scheme to make home ownership more accessible:
- 5% Deposit, No LMI. First-home buyers can now purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). Normally, LMI can cost tens of thousands of dollars if you don’t have a 20% deposit. Under the scheme, the government guarantees up to 15% of your loan, so the bank treats it like you’ve put down 20%.
- Higher Property Price Caps. In Queensland’s metro areas, the scheme now applies to properties valued up to $1,000,000. This is a big increase, opening the door to more options in suburbs where prices have risen.
- Unlimited Places. Previously, only a limited number of spots were available each year, meaning many buyers missed out. Now, there’s no cap on how many buyers can access the scheme.
- No Income Limits. Income caps have been removed, which means more people can qualify.
📝 What First-Home Buyers Should Do Now
- Check Your Eligibility. You must be a first-home buyer (or haven’t owned property in the past), be an Australian citizen/permanent resident, and intend to live in the property.
- Get Pre-Approved. Talk to a mortgage broker or participating bank. Pre-approval means you know exactly how much you can borrow before house-hunting.
- Budget Beyond the Deposit. While the deposit hurdle is lower, don’t forget legal fees, building inspections, council rates, and moving costs.
- Start Searching. With the $1m cap, you now have more choice. But competition is expected to heat up as more buyers take advantage of the new rules, so being ready to act quickly is key.
🤝 How Smyth Real Estate Can Help
At Smyth Real Estate, we work with first-home buyers every day. We can:
- Connect you with trusted finance specialists who understand the new rules.
- Help you find properties that fit both your budget and lifestyle goals.
Buying your first home doesn’t need to be complicated — the right advice makes all the difference.
👉 Ready to start your journey?
Contact us today, and let’s talk about how these changes can get you into your first home sooner than you thought possible.