23 Sep Good News for First Home Buyers – New Benefits Start October 2025
From 1 October 2025, the Australian Government is making significant reforms to the Home Guarantee / First Home Guarantee scheme to make buying your first home more accessible. These changes remove many of the previous barriers (income caps, limited places), increase what properties are eligible, and reduce upfront costs.
Here’s what’s changing, why it matters, and how to make the most of it.
What’s Changing
Key Changes to the First Home Guarantee Scheme in NSW (Effective 1 October 2025)
| Feature | Current Rules (pre‑1 October 2025) | New Rules from 1 October 2025 |
|---|---|---|
| Deposit / Minimum Down‑payment | Typically 5%–10%; LMI required if deposit <20% | 5% deposit allowed; government guarantees up to 15% of the loan, eliminating the need for LMI |
| Lenders Mortgage Insurance (LMI) | Required if deposit <20% | Not required for eligible buyers under the expanded scheme |
| Mortgage Interest Rate | Borrowing >80% = higher rate (≈+0.50%) or costly LMI. | Now interest rates are priced like FHB are borrowing up to 80% (even if a greater amount), whereas normally, if borrowing over 80% their rates would be higher by ~0.50% |
| Income Caps | Individual ~$125,000, couples ~$200,000 | Removed — all first home buyers eligible, regardless of income |
| Property Price Caps | Lower, varied by state and area | Increased: Sydney capital & regional centre cap raised from $900,000 to $1.5 million; other NSW areas from $750,000 to $800,000 |
| Number of Places | Limited to 35,000 per year | Unlimited places available |
| Regional Scheme | Separate rules for regional areas | Regional First Home Buyer Guarantee replaced by the First Home Guarantee |
Why These Changes Matter
- Lower barrier to entry — saving a full 20% deposit is one of the biggest hurdles for first home buyers; reducing it to 5% changes the game.
- More choice — with increased price caps and no place/income caps, more suburbs and property types become possible options.
- More fairness — removes some inequality (e.g. by income) that shut out many buyers, especially in high cost markets.
- Cost savings — avoiding or reducing LMI, saving years of deposit saving, and being able to buy sooner means paying fewer years of rent.
- Potential risks / caution points — increased demand may push prices up; higher loan-to-value loans mean more risk; need to ensure you can service a larger loan.
How We Can Help
Buying your first home can feel overwhelming — from finding the right property to navigating competition and making sure you don’t overpay. That’s where we step in.
Here are the key benefits we provide for first home buyers:
- Access to More Properties
We source opportunities across the market — including off-market, pre-market, and on-market listings — giving you more choice and less competition. - Clarity and Confidence
We simplify the process, explain your options, and guide you step-by-step so you can make informed decisions with confidence. - Expert Negotiation
We negotiate directly with selling agents on your behalf, ensuring you secure the right property at the best possible price and terms. - Time Saved
Instead of spending every weekend at inspections, we streamline the search, only presenting you with properties that meet your needs and budget. - Protection from Costly Mistakes
From assessing strata reports and building condition to researching comparable sales, we ensure you avoid common traps that can cost first home buyers dearly. - Local Market Knowledge
With decades of combined experience, we understand the micro-nuances of Sydney’s suburbs — so you know where your money will go further and where long-term growth is most likely.
Case Study: Helping a First Home Buyer
Client Profile
- Purchaser: Young Professional
- Goal: Secure a first home after missing out on multiple properties
The Challenge
Our client came to us feeling frustrated after repeatedly missing out on properties and finding the buying process overwhelming.
Our Approach
We broadened their options by searching across off-market, pre-market, and on-market listings. Once we identified a standout oversized two-bedroom, two-bathroom apartment with secure parking and a leafy aspect close to transport and amenities, we acted quickly. We completed due diligence and moved fast to negotiate directly with the selling agent.
The Result
We successfully secured the apartment before it went to auction — giving our client peace of mind, confidence in their purchase, and the keys to a home that ticked all their boxes.
Ready to Find Your First Home?
Don’t wait — the October changes open up new opportunities for first home buyers. Contact Premier Home Finders today and let us help you uncover the right property, act fast, and secure your dream home.
📞 Call us: 02 9960 4848
✉️ Email: info@premierhomefinders.com.au
🌐 Visit our website: www.premierhomefinders.com.au
Your first home is within reach — let’s make it happen.