Home Guarantee Scheme (HGS) Changes from October - How it affects Home Buyers
Australia’s property rules are shifting: what’s new now, and what’s coming 1) Home Guarantee Scheme (HGS) expands on 1 October 2025 From 1 Oct 2025, the Commonwealth’s HGS (the umbrella for the First Home Guarantee, Family Home Guarantee and Regional First Home Buyer Guarantee) is being broadened to unlimited places , no income caps , and higher property price caps (caps vary by location; check the postcode tool ). This is a major change from the previous annual place limits and income tests. What it means: More first-home buyers can purchase with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI), because the government guarantees up to 15% (18% for the Family Home Guarantee). Expect extra demand in price bands just under the new caps in each city/region. 2) ‘ Help to Buy ’ shared-equity scheme - status update The federal Help to Buy program (government equity up to 40% for new and 30% for existing homes) progressed during 2025: income/pri...