October 2025 First Home Buyer Changes You Need to Know About

First Home Buyers

8 Oct

As of 1 October 2025, significant changes to Australia's First Home Buyer Scheme aim to make homeownership more accessible. These reforms are designed to assist aspiring homeowners in navigating the current property market.

Unlimited Places and No Income Caps

Previously, the scheme had annual limits on the number of participants and income thresholds. The recent expansion has removed these restrictions, allowing all eligible first home buyers to apply, regardless of income level. This change broadens access to the scheme for a wider range of applicants.

Increased Property Price Caps

To reflect rising property values, the government has increased the maximum property price caps under the scheme. For instance, in Sydney's capital and regional centres, the cap has been raised from $900,000 to $1.5 million. These adjustments make more properties eligible for the scheme, accommodating the current market conditions.

Simplified Access for Regional Areas

The Regional First Home Buyer Guarantee has been replaced with the First Home Guarantee, streamlining the process for buyers in regional areas. This change simplifies access to the scheme for those looking to purchase homes outside major metropolitan centres.

Potential Implications for the Housing Market

While these changes aim to assist first home buyers, there are concerns about their impact on the broader housing market. Critics argue that the increased demand may lead to higher property prices, potentially offsetting the benefits for buyers. For example, some reports suggest that the scheme could contribute to a rise in house prices due to the influx of eligible buyers.

Conclusion

The October 2025 changes to the First Home Buyer Scheme represent a significant shift in Australia's approach to supporting homeownership. By removing previous limitations and adjusting property price caps, the government aims to make homeownership more attainable for a broader range of Australians. However, prospective buyers should remain mindful of the potential market dynamics and consider how these changes may affect their purchasing decisions.