From 1 October 2025, major changes to Australia’s Home Guarantee Scheme will take effect—brought forward three months earlier than the originally planned January 2026 start date. These updates are set to reshape the property market, particularly for first-home buyers and investors.
What’s Changing?
- Unlimited access – No cap on places, opening the scheme to all eligible first-home buyers.
- No income thresholds – Higher-earning households now qualify.
- Higher price caps – For example, Sydney’s ceiling rises from $900,000 to $1.5 million; Brisbane’s from $700,000 to $1 million.
- 5% deposits – Buyers only need a 5% deposit, with the government guarantee covering the rest.
Why It Matters for Investors
Experts forecast increased buyer demand as more first-home buyers gain access to the market. Treasury estimates a modest 0.5% price rise over six years. However, independent forecasts suggest 3.5%–6.6% short-term growth, with some high-demand areas experiencing up to 9.9% increases.
In simple terms, more competition from government-backed buyers could drive property prices higher. For investors, this raises the strategic question: is it better to act now, ahead of October, before demand accelerates further?
The Key Takeaway
If you’ve been considering a purchase, the period leading up to and shortly after October 2025 could present a valuable opportunity to enter the market before price momentum builds.
We’re already seeing increased enquiries from investors leveraging equity in their portfolios to purchase additional properties in anticipation of the October changes. With Prosperity’s extensive lender panel, we can tailor strategies to help you continue to build your property portfolio in a competitive environment.