If you last checked first home guarantee scheme eligibility before October 2025, almost everything you remember is now out of date.
First home guarantee scheme eligibility now requires that you are eighteen or over, an Australian citizen or permanent resident, buying as an owner-occupier within the price cap for your area, with at least a five percent deposit. The government guarantees up to fifteen percent of the value, so no insurance premium applies.
First home guarantee scheme eligibility was rewritten on 1 October 2025. The income test was abolished, the annual limit on places was scrapped, and the Sydney property price cap rose from $900,000 to $1.5 million.
First home guarantee scheme eligibility now requires that you are eighteen or over, an Australian citizen or permanent resident, buying as an owner-occupier within the price cap for your area, with at least a five percent deposit. The government guarantees up to fifteen percent of the value, so no insurance premium applies.
Buyers who were told they earned too much two years ago are still assuming they are excluded. The income test is gone. That single change opened the scheme to a large group of professionals who never reapplied.
These are the changes that matter most. If you were told you failed first home guarantee scheme eligibility before October 2025, it is worth being reassessed.
Six requirements, and all of them must be satisfied at the time you apply.
That last point is the one people overlook. The guarantee removes the insurance premium, but it does not relax the lender’s borrowing capacity test.
The fhbg property price cap is now the binding constraint on first home guarantee scheme eligibility for most applicants, rather than income.
Caps for Adelaide, Hobart, Canberra and regional areas sit on separate tiers. Confirm the current figure for your exact location with Housing Australia before you make an offer, since going one dollar over disqualifies the purchase.
This is the change to first home guarantee scheme eligibility that most buyers have not registered.
The first home guarantee income cap previously excluded singles earning above $125,000 and couples above $200,000. Both thresholds were removed. Whether you earn $60,000 or $250,000, the scheme is available provided you meet the other criteria.
Under the old system, meeting first home guarantee scheme eligibility was not enough. Places ran out early in the financial year and applicants waited.
Home guarantee scheme places are now unlimited. There is no annual quota, no waiting list and no risk of missing out because you applied in May rather than July. If you qualify and a lender approves you, the guarantee is available.
Previously, having ever owned Australian property permanently ended your first home guarantee scheme eligibility.
The saving is the insurance premium you would otherwise pay with a five percent deposit.
Premium figures are indicative and vary by insurer. Even at the lower end, the saving typically exceeds a year of after-tax income for many buyers.
First home guarantee scheme eligibility does not exclude you from other support. The guarantee sits alongside state and federal measures.
Stacking these correctly is where a broker adds real value. Our home loans Sydney page covers how the loan itself is structured.
You apply through a lender, never directly to the government.
A handful of exclusions from first home guarantee scheme eligibility remain, and they catch people out.
These misconceptions about first home guarantee scheme eligibility come up constantly, and most stem from the pre-2025 rules.
If you are eighteen or over, an Australian citizen or permanent resident, buying as an owner-occupier within your regional price cap with at least a five percent deposit, and you meet the lender’s serviceability test, you are very likely eligible. There is no longer any income test.
There is no income cap. The previous limits of $125,000 for singles and $200,000 for couples were removed on 1 October 2025. Your income still affects how much a lender will advance, but it no longer affects eligibility for the guarantee.
$1,500,000 for Sydney and NSW regional centres, raised from $900,000 on 1 October 2025. Going even one dollar above the cap disqualifies the purchase, so confirm the current figure with Housing Australia before contracting.
There is no longer a limit. The previous cap of 35,000 places per financial year was abolished on 1 October 2025. Every eligible applicant approved by a participating lender can access the guarantee.
Possibly. A Fresh Start rule allows applicants who have not owned residential property in Australia in the past ten years to qualify. This covers people re-entering after a relationship breakdown, returning from overseas, or recovering from hardship.
Permanent residents now qualify. The scheme was previously restricted to Australian citizens, and that restriction was lifted as part of the October 2025 expansion.
Not under the joint pathway. Couples must be married or in a de facto relationship to apply together. Friends and siblings buying jointly do not currently qualify.
No. The government guarantees a portion of the loan to the lender, which removes the need for insurance. It takes no ownership interest, unlike a shared equity scheme where the government does hold a share.
First home guarantee scheme eligibility changed substantially in October 2025. If you were assessed under the old rules, the answer may now be different.
This guide was reviewed by Paritosh Wadhwani, Director and principal broker at APW Finance Pty Ltd, Bella Vista NSW. Paritosh structures residential, commercial, SMSF and self-employed lending for clients across Sydney and the Hills District.
APW Finance Pty Ltd delivers expert lending solutions with personalised service, empowering clients across residential, commercial, and business sectors.