Last Updated: September 2025
From 1 October 2025, the First Home Guarantee (FHG) expands: unlimited places, no income caps, and higher property price caps. The core mechanics remain the same—buy with as little as a 5% deposit and avoid LMI thanks to a government guarantee (up to 15% of the property value).
Note: Until 30 September 2025, current rules still apply; from 1 October, the changes below take effect.
What changed from 1 October 2025
- No place limits: the scheme no longer caps the number of guarantees.
- No income caps: higher-income first home buyers can use the FHG.
- Higher price caps: thresholds lifted nationwide (see table).
- Regional access simplified: the Regional First Home Buyer Guarantee is folded into FHG.
The official price caps (from 1 Oct 2025)
Capital/Regional-centre vs Other area caps (regional centres are Illawarra, Newcastle & Lake Macquarie; Geelong; Gold Coast & Sunshine Coast):
| State/Territory | Capital & Regional Centres | Other Areas |
|---|---|---|
| NSW | $1,500,000 | $800,000 |
| VIC | $950,000 | $650,000 |
| QLD | $1,000,000 | $700,000 |
| WA | $850,000 | $600,000 |
| SA | $900,000 | $500,000 |
| TAS | $700,000 | $550,000 |
| ACT | $1,000,000 | – |
| NT | $600,000 | – |
| JBT / Norfolk | $550,000 | – |
| Christmas / Cocos | $400,000 | – |
Use Housing Australia’s Property Price Caps Tool to confirm your target suburb by postcode. Housing Australia
FHG eligibility (exact rules to use)
1) Personal eligibility
- Citizenship/PR & age: Australian citizen or permanent resident, 18+.
- First-home status: First-home buyer or you haven’t owned an Australian residential property in the last 10 years (any ownership form).
- Owner-occupier: you must move in within 6 months of settlement (or occupancy certificate for new builds) and remain living there while the guarantee applies. Renting it out breaches eligibility.
2) Financial & loan requirements
- Minimum deposit: at least 5% of the Property Value (as your lender assesses it). If you have ≥20%, you’re not eligible for FHG. Deposit source (e.g., genuine savings vs gifts) is lender policy.
- Loan type: owner-occupier, principal & interest repayments (limited exceptions), term up to 30 years (plus up to 3 years to build).
- Refinancing: you may refinance to another participating lender and keep the guarantee if you don’t increase the loan amount or extend the term; refinancing to a non-participating lender loses the guarantee. There’s no fixed 12-month wait rule.
- Apply via a participating lender (not directly to Housing Australia). Lenders apply their own credit policy and serviceability tests.
3) Property requirements
- Must be a residential property at or below the price cap for the location. For land + separate build, the combined land price + build cost must be under the cap. Eligible types include new or established homes, house-and-land, off-the-plan, and land + build.
What not to include (common myths to avoid)
- Income cap figures: Do not quote $90k/$120k—income caps are removed from 1 Oct 2025 (prior caps were higher and now irrelevant).
- Occupancy timing: It’s 6 months, not 12, and you must continue to live in the home while the guarantee applies.
- “Genuine savings only” as a scheme rule: The scheme requires a 5% deposit; how it’s sourced is subject to lender policy.
- Hard credit numbers (e.g., DTI <6, credit score 600+): Not scheme rules; these are lender-specific and vary. Cite your lender’s policy instead.
Step-by-step: preparing a compliant application
- Check eligibility & caps with Housing Australia’s Eligibility Tool and Price Caps Tool.
- Choose a participating lender (majors and customer-owned banks are on the panel).
- Get your documents ready: ID and citizenship/PR proof; last year’s ATO Notice of Assessment; income docs; savings/deposit evidence; and (once found) contract of sale and valuation.
- Secure a place & proceed to settlement: your lender reserves a place, arranges valuation, and finalises the loan; you then move in within 6 months.
Clean checklist (copy/paste)
- Citizen or PR, 18+ ✔️
- First-home buyer or not owned in 10 years ✔️
- Owner-occupier: move in within 6 months and remain ✔️
- Deposit ≥5%; lender serviceability met ✔️
- Property under local cap; eligible type ✔️
- Apply via participating lender ✔️
Sources (official)
- Housing Australia — Media Release (24 Aug 2025): Unlimited places; no income caps; new price-cap table effective 1 Oct 2025; tools and application flow.
- Housing Australia — First Home Guarantee page: Minimum 5% deposit; guarantee up to 15%; program overview.
- Housing Australia — Property Price Caps Tool: Postcode look-up; combined land + build rule.
- Housing Australia — Information Guide (July 2025): Move in within 6 months; owner-occupier ongoing; loan criteria; refinance conditions.
- Housing Australia — Participating Lenders: Apply through approved lenders; lender credit policy applies.
Disclaimer: This guide is general information, not financial advice. Confirm eligibility and loan suitability with a participating lender and review Housing Australia’s latest guidance.
FAQs — FHG Eligibility 2025
When do the new FHG rules start?
1 October 2025. Until 30 September 2025, the current settings still apply.
Are there any income caps from October?
No. Income caps are removed from 1 October 2025.
What’s the minimum deposit?
At least 5% of the property value (as assessed by your lender).
Do I still pay LMI?
No. With an FHG place, the government guarantee (up to 15%) lets you avoid LMI.
Who is eligible?
Australian citizens or permanent residents, aged 18+, who are first-home buyers or haven’t owned property in Australia in the last 10 years, and will live in the home.
What are the price caps from 1 Oct 2025?
They vary by location. Examples: NSW (Sydney/Illawarra/Newcastle–Lake Macquarie) $1.5m; VIC (Melbourne/Geelong) $950k; QLD (Brisbane/Gold Coast/Sunshine Coast) $1.0m. Use Housing Australia’s price-caps tool for your postcode.
Do I have to live in the property?
Yes. Move in within 6 months (or at occupancy for new builds) and remain owner-occupied while the guarantee applies.
Which properties are eligible?
New or established residential homes, off-the-plan, house-and-land, and land + separate build (the combined land + build cost must be under the cap).
How do I apply?
Through a participating lender (or a broker who places loans with participating lenders). You can’t apply directly to Housing Australia.
Can I refinance later?
Usually yes—to another participating lender, and generally without increasing the loan amount or extending the term (lender conditions apply).
Can I rent the property out?
Not while the guarantee is in place—you must keep it as your principal place of residence.
Can I combine FHG with other support?
Often yes with state programs (e.g., First Home Owner Grant, stamp-duty concessions). FHG can’t be stacked with another HGS guarantee on the same purchase.