Buying your first home can feel like a distant dream when you’re up against rising property prices and the need for a 20% deposit. But the First Home Guarantee Scheme (FHBG), backed by the Australian Government and now expanded as of 1 October 2025, is making home ownership more achievable than ever.
With unlimited spots available under the scheme, increased property price caps, and savings of up to $30,000 in LMI costs. First home buyers can now enter the market faster and more affordably and Stryve Finance is here to guide you every step of the way.
What is the First Home Guarantee Scheme?
The First Home Guarantee Scheme is a government initiative that enables eligible Australians to purchase a property with as little as a 5% deposit, without paying Lenders Mortgage Insurance (LMI).
Usually, if you have less than a 20% deposit, lenders charge LMI, which can cost tens of thousands of dollars. Under this scheme, the government guarantees up to 15% of the loan, helping you skip that cost entirely.
As of October 2025, the scheme is expanding dramatically. The government has announced unlimited availability of FHBG places, removing the previous annual cap of 35,000 applicants.
Additionally, property price caps are increasing, allowing buyers to access homes in more competitive areas. With government-backed guarantees, no cap on applicants, and more eligible properties under new price thresholds, buying your first home is now more accessible than ever.
Key Benefits of the Scheme
The First Home Guarantee Scheme is designed to eliminate the two biggest barriers facing first-time buyers: the size of the deposit and the cost of LMI. With a minimum 5% deposit, you can enter the market sooner and keep your savings intact for renovations or furniture. Skipping LMI can also save you $10,000–$30,000, depending on your loan size.
The unlimited scheme places mean you don’t have to worry about competing for a spot or rushing to apply before quotas run out. You also benefit from broader access to more valuable properties thanks to increased regional and metro price caps.
Self-Employed?
If you're self-employed, we offer Tailored Mortgage Solutions to suit your income structure and business lifestyle.
At Stryve Finance, we don’t just find you a lender, we guide you through every step of the process, from eligibility to settlement, with expert advice and full transparency.
Not sure how much you can borrow? Use our Borrowing Power Calculator to get an accurate estimate based on your income and expenses.
Who Is Eligible?
To qualify for the scheme, you must meet a few key criteria:
- Age: You must be at least 18 years old.
- Citizenship/Residency: You need to be an Australian citizen or permanent resident.
- Property Ownership History: You must be a first home buyer or not have owned property in Australia in the last 10 years.
- Income: Individuals must earn less than $125,000, and couples must earn less than $200,000 (based on your Notice of Assessment).
- Deposit: You must have between 5% and 20% of the property's value saved.
- Purpose: The property must be used as your primary place of residence (owner-occupier).
New Rule (2023)
From 2023 onward, the scheme now allows friends and siblings to apply together, not just married or de facto couples. That means you can team up with someone you trust to get onto the property ladder faster.
What Kind of Property Can You Buy?
The scheme covers a wide range of property types to suit your goals and lifestyle:
- Established Homes: Move-in ready houses, apartments, townhouses.
- New Builds: Newly constructed homes or those under construction.
- House and Land Packages: Combine a land purchase with a building contract.
- Off-the-Plan Properties: Secure your new home before it’s built.
- Vacant Land + Contract to Build: Great if you want to customise your home.
This flexibility means you’re not limited to one type of home, whether you want a city apartment, a suburban house, or to build your dream home from scratch, the FHBG can support your purchase.
And we’ll help you understand which options are eligible based on your state and lender.
Curious about what kind of property you can afford? Check your budget with our Purchasing Power Calculator.
Property Price Caps (Effective 1 October 2025)
To keep up with rising home values, the government is raising property price caps across Australia, effective 1 October 2025. This change makes more properties in popular areas eligible under the scheme.
| Location | Old Cap | New Cap (From October 2025) |
|---|---|---|
| New South Wales - capital city and regional centre | $900,000 | $1,500,000 |
| New South Wales - other | $750,000 | $800,000 |
| Victoria - capital city and regional centre | $800,000 | $950,000 |
| Victoria - other | $650,000 | $650,000 |
| Queensland - capital city and regional centre | $700,000 | $1,000,000 |
| Queensland - other | $550,000 | $700,000 |
| Western Australia - capital city | $600,000 | $850,000 |
| Western Australia - other | $450,000 | $600,000 |
| South Australia - capital city | $600,000 | $900,000 |
| South Australia - other | $450,000 | $500,000 |
| Tasmania - capital city | $600,000 | $700,000 |
| Tasmania - other | $450,000 | $550,000 |
| Australian Capital Territory | $750,000 | $1,000,000 |
| Northern Territory | $600,000 | $600,000 |
| Jervis Bay Territory and Norfolk Island | $550,000 | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 | $400,000 |
Not Sure What Cap Applies to Your Suburb?
Our team checks the updated postcode-based caps for you, verifies lender eligibility, and ensures your chosen property qualifies, saving you time and avoiding lender rejection. Contact a Stryve broker and we’ll do it for you, free of charge. Don’t forget to factor in stamp duty. Our Stamp Duty Calculator helps you estimate costs based on your state and purchase price.
Many buyers miss out on homes simply because their bank limits them to older data or misapplies regional caps. At Stryve Finance, we:
- Check real-time caps for your exact suburb or postcode
- Match you to lenders who accept your preferred property type
- Flag any restrictions before you sign a contract
Let us confirm your property meets scheme and lender criteria before you make an offer, avoiding issues like ineligible price caps, zoning restrictions, or title complications.
Why Choose Stryve Finance?
At Stryve Finance, we’re more than just brokers, we’re your strategic partners in the home buying journey.
- We compare over 50 lenders, including those participating in FHBG.
- From document collection and FHBG place reservation to lender coordination and final loan approval, we handle every stage of the process so you don’t have to.
- We offer dedicated support from first call to final settlement.
- We’ve helped over 350 Australians access the First Home Guarantee Scheme, saving clients an average of $18,000 in upfront costs.
“I thought buying my first home was out of reach. But Stryve showed me how to do it with just a 5% deposit and no LMI. Game-changer!” - Jess, first home buyer in Sydney
FAQ
Can I buy it with a friend or sibling?
Yes. The scheme now accepts joint applications from non-couples, including friends and family members.
Can I use the FHBG for an investment property?
No. The scheme is for owner-occupied homes only. You must live in the property.
Can I combine this scheme with other grants?
Yes. You can combine the First Home Guarantee with:
- First Home Owner Grant (FHOG)
- Stamp Duty Concessions
- Super Saver Scheme
How long does approval take?
With Stryve’s support, you can get pre-approval within days, and we can often reserve your FHBG place instantly with our partner lenders.
Dylan Bertovic is the Director and Senior Finance Broker at Stryve Finance, specialising in non-traditional lending solutions. He helps clients across Australia with tiny home loans, construction finance, equipment and asset lending, refinancing, and investor loans. With deep expertise in self-employed and renovation mortgages, Dylan is known for crafting tailored strategies that get results
