A Historical Milestone for First Home Buyers — All Income Caps & Place Limits REMOVED
Unlimited Places, No Income Caps, and $1.5M in Sydney: Your Guide to Australia's Biggest First Home Buyer Shift
1 October 2025 marks a historical milestone for every Australian hoping to own a home.
This is not just another government scheme update. Today is the day the biggest obstacles to home ownership, namely, the enormous 20% deposit and the costly Lenders Mortgage Insurance (LMI) were effectively removed for all eligible first home buyers.
The Australian Government’s decision to launch the sweeping expansion of the First Home Guarantee (FHBG) on this date is an unprecedented moment in modern housing policy. With unlimited places, the removal of all income caps, and significantly higher property price limits, the FHBG is now a universal tool for first home buyers, regardless of their profession or earnings.
If you thought you were previously ineligible or priced out, it is time to check your eligibility again.
The team at Barco Finance is here to walk you through exactly what has changed today and how you can take advantage of these new, generous, and unlimited rules to step into your first home sooner.
The Three Major Reforms: What Changes Today?
The updated scheme, now formally known as the Australian Government 5% Deposit Scheme (or simply the expanded FHBG), dismantles the three main barriers that previously limited access for many buyers:
1. No Limits on Places (Unlimited Access)
The Problem: Places were capped annually (e.g., 35,000 per year), forcing a frantic rush and leaving thousands of eligible buyers disappointed or on waitlists.
The Solution: From today, there is no limit on the number of guarantees Housing Australia can issue. If you meet the eligibility criteria, you can secure a spot—the pressure is off.
2. No Income Caps (Eligibility for All First Home Buyers)
The Problem: Eligibility was restricted by strict income limits ($125,000 for singles, $200,000 for couples), excluding many successful professionals and dual-income households who still struggled to save the 20% deposit.
The Solution: Income caps have been abolished. This is a monumental shift. Whether you are a higher-earning individual or a dual-income couple, you can now access the scheme, provided you meet all other criteria.
3. Higher Property Price Caps (More Choice in More Suburbs)
The previous price caps often lagged behind lagged the growth in major property markets, limiting buyers to homes in outer-fringe suburbs. The new caps have been substantially increased to align with current market conditions, opening vast new swathes of desirable suburbs.
The New Property Price Caps: What Can You Afford?
This table reflects the current property price caps effective 1 October 2025, which determine the maximum value of a home you can purchase under the expanded FHBG in your area:
State/Territory
Location
New FHBG Cap (Effective 1 Oct 2025)
Key Area Examples
New South Wales
Capital City & Regional Centers*
$1,500,000
Sydney, Illawarra, Newcastle, Lake Macquarie
Other Regions
$800,000
Central West, Far West, Riverina
Victoria
Capital City & Regional Centre**
$950,000
Melbourne, Geelong
Other Regions
$650,000
Ballarat, Bendigo
Queensland
Capital City & Regional Centres*
$1,000,000
Brisbane, Gold Coast, Sunshine Coast
Other Regions
$700,000
Cairns, Townsville
South Australia
All Areas
$900,000
Adelaide and surrounding areas
Western Australia
All Areas
$850,000
Perth and surrounding areas
Australian Capital Territory
All Areas
$1,000,000
Canberra
Tasmania
All Areas
$700,000
Hobart, Launceston
Northern Territory
All Areas
$600,000
Darwin
Export to Sheets
The Core Benefit is Simple: By guaranteeing up to 15% of your loan to the lender, the government allows you to purchase a home with a minimum 5% deposit (or 2% for Single Parent Guarantee recipients) while eliminating the need for LMI—a saving that can be worth tens of thousands of dollars upfront.
Action Plan: How to Apply Today
The door is now open, but buying a home still requires preparation. Here is your Barco Finance checklist to take advantage of this historical opportunity:
Confirm Your Deposit & Costs: You still need a minimum of 5% deposit saved, plus additional funds to cover upfront costs like stamp duty, legal fees, and conveyancing.
Determine Your Borrowing Power: While the income cap is gone, lenders will rigorously check your ability to service the loan. This is where your serviceability calculation becomes critical.
The Barco Finance Advantage: The FHBG is offered through a panel of participating lenders. As your finance broker, Barco Finance can:
Assess your full eligibility for the expanded scheme.
Determine your true borrowing capacity.
Secure your spot with the lender offering the most competitive rate and conditions under the scheme.
Don't wait. The biggest barriers have been removed, but the property market remains competitive. Contact Barco Finance today to get your application processed and secure your pre-approval.
Ready to Make History? Talk to Barco Finance.
The expanded First Home Guarantee, effective today, 1 October 2025, is the game-changer you've been waiting for. It significantly reduces your upfront costs, drastically cuts your deposit savings time, and opens up more suburbs than ever before.
Don't miss out on this monumental opportunity.
start your journey to home ownership. Book a free, no-obligation eligibility video call now
Book now
source:
Revenue NSW
firsthome.gov.au