First Home Buyers Gain an Edge: Unlimited Places and Higher Price Caps from October 2025
From October 2025, first home buyers in Australia will have access to expanded opportunities under the Home Guarantee Scheme. With unlimited places and increased property price caps, more buyers will be able to secure their first property with as little as a 5% deposit and avoid the costly burden of Lenders Mortgage Insurance (LMI).
This change has the potential to open doors for many aspiring homeowners, but as always, the details matter. Understanding how the scheme works, what the new thresholds mean, and how to best position yourself in a competitive market will make all the difference.
What’s Changing from October 2025
The Australian Government has announced that from 1 October 2025:
There will be no limit on the number of places available under the First Home Guarantee
Property price caps will be increased, reflecting current market conditions across the country
Eligible buyers can purchase with a deposit as low as 5% while avoiding LMI, significantly reducing upfront costs
This is welcome news for many Australians who have struggled to enter the market, particularly as housing affordability remains a challenge in key metropolitan areas.
Why This Matters for First Home Buyers
For buyers, the removal of caps on places under the scheme means you no longer need to compete for limited allocations. Coupled with higher price caps, it becomes more realistic to purchase in suburbs that better suit your lifestyle and long-term needs.
Avoiding LMI can also save tens of thousands of dollars, money that can instead go towards your deposit or future financial security. This creates a pathway for buyers to enter the market earlier and with greater confidence.
The Opportunity and the Challenge
While the scheme creates more opportunities, it also brings challenges. An increase in eligible buyers, combined with higher price caps, may add competition to already sought-after areas. Without the proper guidance, buyers risk overpaying or compromising on a property that doesn’t support their lifestyle or long-term goals.
That’s why approaching the market strategically is crucial. The right property can support not only your lifestyle today but also your financial growth for years to come.
How a Buyer’s Advocate Can Help
At Turley Property Advocates, we work closely with clients to navigate opportunities like the First Home Guarantee with clarity and confidence. Our role is to:
Identify properties that align with both your lifestyle and future goals
Provide independent advice so you can buy smarter, not just faster
Access off-market opportunities that many first home buyers never see
Negotiate on your behalf to ensure you secure the right property at the right price
Buying your first home is a milestone worth celebrating, but it’s also one of the most significant financial commitments you’ll ever make. Independent guidance helps ensure that excitement is matched with security.
Looking Ahead
With unlimited places and higher property price caps set to launch in October 2025, preparation will be key. Taking the time now to understand your options, budget, and priorities will ensure you’re ready to act when the opportunity arises.
If you are considering buying your first home, now is the perfect time to start planning. Contact Turley Property Advocates to discuss your goals and to help prepare a clear strategy so that when the scheme opens, you’re not just ready to buy, you’re prepared to buy well.
Ready to start planning? Book your consultation here.