For many young Australians, buying their first home feels perpetually out of reach, thanks to rising house prices, slow wage growth, and a rental market in price crisis.
In response, the Federal Government has fast-tracked one of its key housing policies: as of Wednesday, October, eligible first homebuyers are able to purchase a property with just a 5% deposit — down from 20% — and without paying lenders’ mortgage insurance. It’s a step aimed at getting more people into home ownership sooner. So who is eligible for the scheme, and how do they access it? Here's what we know.
Who is eligible for the scheme?
There are 35,000 places within the scheme each year. To qualify for one of these spots, you must be:
- A first homebuyer or not have owned a property in Australia in the last 10 years
- Over 18
- An Australian citizen or permanent resident
- Intending to live in the home, not use it as an investment property
- and have a deposit saved of at least 5% of the property value
You can check your eligibility here.
There are no more income caps
Previously, the scheme had income caps of $125,000 for individuals, and $200,000 for couples. As of October 1, these will be removed, meaning the scheme will expand to cover all first home buyers. In May 2025, Labor announced plans to do this in 2026 if re-elected into government — so October 1 is a significantly earlier date.
What kinds of homes can you buy under the scheme?
The First Homebuyers Guarantee covers a range of property types, but not every kind of home is eligible. To qualify, the property must be:
- A residential property (not commercial or rural land)
- Within the price cap for your area
- Move-in ready, or under contract to be built soon
The following kinds of homes are covered by the scheme:
- existing houses, townhouses, and apartments
- house and land packages
- vacant land with a separate contract to build a home
- off-the-plan apartments and townhouses
But there are price caps by state and region
The value of properties that can be purchased under the scheme will continue to be limited. However, these caps were still raised as of October 1.
The maximum property price you can buy under the scheme depends on where you’re buying. This online postcode tool will give you a guide of the price cap for the location you want to buy in. However, you will still need to confirm the exact price cap with your bank or lender for the property you intend on purchasing.
The current price caps by state and region are:
- New South Wales: $900,000 (capital city and regional centre), $750,000 (other areas)
- Victoria: $800,000 (capital city and regional centre), $650,000 (other areas)
- Queensland: $700,000 (capital city and regional centre), $550,000 (other areas)
- Western Australia: $600,000 (capital city and regional centre), $450,000 (other areas)
- South Australia: $600,000 (capital city and regional centre), $450,000 (other areas)
- Tasmania: $600,000 (capital city and regional centre), $450,000 (other areas)
How do you actually access the scheme?
Okay, so all that sounds great, but how do you access the scheme?
You don't have to apply through Housing Australia to get access to the scheme, if you meet the eligibility requirements and you're one of the first 35,000 people to buy, you automatically get access. The only caveat is that you will have to apply for your loan through one of the approved and participating lenders. You can find a list of them on the Housing Australia website.
The list includes some of Australia's biggest banks, credit unions and loan providers. If you're having trouble, a mortgage broker could help guide you through the process and help you compare loans.
