First Home Guarantee Expansion—From 1 October 2025

From 1 October 2025, Australia’s Home (First-Home) Guarantee Scheme will be greatly expanded. Key changes:

• Unlimited places—all eligible buyers can apply with no cap on entries.

• No income limits—higher-earners now qualify too.

• Higher property caps—for example, Sydney’s limit jumps to $1.5 million, and Melbourne to $950,000.

• Continue to enter the market with just a 5% deposit and avoid paying lenders’ mortgage insurance (LMI).Housing Australia, The Australian, Prosperity Associates, Prime Minister of Australia

Two-Year Ban on Foreign Buyers of Existing Homes

Starting 1 April 2025 and lasting until 31 March 2027, foreign persons—including temporary residents and overseas companies—cannot purchase existing homes, unless they fall under certain exemptions. This move aims to free up around 1,800 properties a year for local buyers.Australian Taxation Office,Reuters

National Housing Accord: 1.2 Million New Homes by 2029

The National Housing Accord, agreed by all governments, targets the construction of 1.2 million well-located homes over five years, starting mid-2024.Treasury, Prime Minister of Australia, Real Estate Australia
Unfortunately, progress is lagging: after the first year, over 55,300 homes are behind schedule, with an estimated shortfall of 250,000–300,000 homes unless construction significantly speeds up.News.com.au, The Australian Some experts stress that a “wartime-level” effort is needed, along with reforms to planning, infrastructure, and building capacity.The Australian

Why It Matters for Home Buyers

• Lower deposit barriers make home ownership more accessible—even with rising prices.

• Restrictions on foreign buyers help increase supply in the existing home market.

• But the ongoing shortage of new homes continues to push prices up, especially with a strong seller’s market and buyer optimism. Affordable options remain limited.

For more details, check out the official Housing Australia site about the Home Guarantee Scheme, or see the Treasury’s National Housing Accord plan. Housing Australia, Treasury

• When? Expansion kicks in on 1 October 2025; foreign-buyer ban: 1 April 2025 – 31 March 2027.

• What’s new? Unlimited places, no income caps, a low 5% deposit, and higher property price limits.

• Why now? To boost affordability and give locals greater home-buying opportunities.

• Watch this space! Rising prices and supply shortfalls mean government targets are at risk.