061. Home guarantee scheme- what may be some potential repercussions

https://cabpropertywealth.com.au/

Here is the Link to the official Government site HERE

The changes relate to the Home Guarantee Scheme, which helps first-home buyers purchase a home with a small deposit without needing to pay Lenders Mortgage Insurance (LMI).

Here's a breakdown of the key changes coming into effect on October 1st, 2025:

• Unlimited Places: The scheme will remove the annual cap on the number of places available. This means all eligible first-home buyers who meet the criteria can access the scheme.

• Higher Property Price Caps: The maximum price of a property you can buy under the scheme will be significantly increased in most capital cities and regional centers to reflect current market values. For example, the cap in Sydney and surrounding areas will increase from $900,000 to $1,500,000.

• Removal of Income Caps: The income limits for applicants are being scrapped. Previously, there were caps of $125,000 for singles and $200,000 for couples. This change allows a broader range of Australians to be eligible for the scheme.

The government has brought these changes forward from their original start date to help more Australians enter the housing market sooner. While these changes are intended to help first-home buyers, some property experts have warned that increasing the number of eligible buyers and raising the price caps could lead to increased competition and potentially drive property prices higher