First home buyer scheme changes make home ownership more achievable.

If you’ve been struggling to break into the property market, recent changes to the First Home Guarantee Scheme could be the breakthrough you’ve been waiting for.

What’s new?

The First Home Guarantee Scheme has undergone significant changes in 2025, especially in Melbourne:

• Price cap increased from $800,000 to $950,000
   
• Income limits removed, making more buyers eligible
   
• 5% deposit scheme proposed, reducing upfront costs
   

Melbourne market opportunity

Let’s say you were previously targeting a $750,000 property. With the new cap, you can now consider homes up to $950,000, without needing to pay Lenders Mortgage Insurance (LMI). That’s a potential $20,000-$30,000 saved upfront.

Strategy in action

• First-time buyers who were struggling to save a 20% deposit can now enter the market with just 5%, thanks to the updated scheme—without paying LMI, and in areas they actually want to live, thanks to the increased price threshold.
   
• Buyers who were previously excluded due to income thresholds are now eligible, provided they purchase within the new price cap, giving them a second chance to secure a home with government support.

These changes are making home ownership more accessible than it’s been in years.

Your path to home ownership just got easier!

With fewer barriers and more flexibility, now could be your moment to step into the property market.

Book a free eligibility check and find out if you qualify under the updated First Home Guarantee Scheme.

Disclaimer: The figures and scenarios provided are for illustration purposes only. Eligibility for government schemes and actual savings will depend on your individual financial situation. Please speak with a FinancePath adviser to assess your options.