First Home Guarantee Scheme Update July 2025

The Albanese government had today opened up the First Home Guarantee Scheme to all First Home Buyers by removing income limits and increasing purchase price caps for all places offered from 1 January 2026.

In the meantime income caps ($125,000 per annum for singles and $200,000 for couples) and purchase price caps (varies by region - $750,000 in regional NSW) will remain unchanged.

The government will also invest $4.9 million over four years from 2025–26 to continue the Regional Home Buyer Guarantee and the Family Home Guarantee, which support regional and single-parent first home buyers to purchase a home with a smaller deposit.

The shared equity scheme, in which the government will co-purchase with eligible borrowers (up to 40% of the purchase price for new homes) is also slated to come into effect this year, although no firm date has been set. Low to middle-income earners with a 2% deposit will be eligible to access the shared equity scheme.

Our recommendation, if you are looking to access the First Home Guarantee Scheme and Shared Equity Scheme is to:

• Start Saving – you will need a deposit of 2-5% depending on the scheme you are looking to enter
• Complete your tax return – the government assesses your income eligibility from your ATO Notice of Assessment
• Get your ID order – its s amall but important step – physical drivers licence, physical Medicare Card, Birth Certificate or Passport and any evidence of change of name
• Get a reality check – check your borrowing power – online calculators don’t tell you how the banks actually assess the different components of your income – your broker will

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