Home Guarantee Scheme

What changed on 1 October 2025

The First Home Guarantee (FHBG) was significantly expanded from 1 October 2025: the annual cap on the number of places was removed, the income tests were scrapped, and the property price caps were raised. In practice that turns the FHBG from a limited, first-in-first-served scheme into one open to essentially all eligible first home buyers who want to buy with a 5% deposit and no LMI.

The price caps below come straight from Housing Australia's own postcode-level price cap tool and can be adjusted again, so treat them as a guide and confirm the exact cap for your suburb and postcode on the Housing Australia page linked in the references before you rely on them, since some suburbs span more than one postcode with different caps.

The two streams now

Since 1 October 2025 the scheme, renamed the Australian Government 5% Deposit Scheme, runs two streams. The General Stream (formerly the First Home Guarantee): 5% deposit, no LMI, for first home buyers, no longer place-capped. The Single Parent Stream (formerly the Family Home Guarantee): 2% deposit, no LMI, for single parents or single legal guardians of dependants. The Regional First Home Buyer Guarantee is closed to new applicants, regional buyers now apply through the General Stream or the Single Parent Stream depending on their circumstances. Check Housing Australia for the current position on each stream.

Who is eligible now

For the First Home Guarantee, the previous income tests ($125,000 for singles and $200,000 for couples) no longer apply after the 1 October 2025 changes. The core conditions that remain are that you are a first home buyer (you cannot currently own property in Australia), you intend to live in the property as your principal place of residence, and the property is within the applicable price cap for its location.

What are the property price caps by state?

Each state and territory has its own cap, and most states split it further between a capital city and regional-centre tier and a lower tier for everywhere else. As at 1 November 2026, per Housing Australia's own property price cap table:

A cap is set by postcode, not just by city name, and a suburb that spans two postcodes can carry two different caps. Confirm your exact suburb and postcode with Housing Australia's postcode search tool before you rely on a figure here.

• NSW regional centres: Central Coast, Coffs Harbour-Grafton, Illawarra, Mid North Coast, Richmond-Tweed, and Newcastle and Lake Macquarie.
• Victoria's only regional centre under this scheme is Geelong, not any other regional city.
• Queensland's regional centres are the Gold Coast and the Sunshine Coast.
• Jervis Bay Territory and Norfolk Island sit at $550,000; Christmas Island and the Cocos (Keeling) Islands sit at $400,000.

How the scheme actually works

Housing Australia (the government body running the scheme) guarantees the portion of the loan above 80% LVR, meaning the lender treats it as an 80% loan for capital purposes and waives LMI. You still owe the full loan, including the guaranteed portion. If you default and the bank loses money, the government pays the bank, then recovers the shortfall from you.

General information only, not personal advice. The scheme changed on 1 October 2025 and its caps can be adjusted, so confirm the current rules with Housing Australia or your lender before relying on them.