Federal First Home Buyer Scheme

Here is a detailed comparison between the previous federal first home buyer scheme and the new scheme introduced in October 2025, highlighting the major differences:

Major Differences Summary

• Removal of Caps: The new scheme removes the previous caps on the number of participants and income limits, making it accessible to all eligible first home buyers regardless of income.

• Higher Property Price Limits: Property price ceilings have significantly increased to align with current median house prices in capital cities and regional centres.

• Unified Access: The separate regional buyer stream is merged into the general stream, simplifying scheme access.

• Expanded Help for Single Parents: The single parent stream now allows eligible single parents a 2% deposit option without restrictions based on previous ownership.

• Faster Entry into Homeownership: Due to unlimited places and no income caps, buyers can enter the market much faster, potentially cutting saving time for deposits by years.

• Continued LMI Avoidance: The scheme maintains guarantees to help avoid Lenders Mortgage Insurance, saving first home buyers substantial upfront costs.

This expansion is designed to make home ownership more accessible and reduce barriers for a broader range of Australians, particularly addressing affordability challenges seen under the previous scheme.

Aspect	Previous Scheme	New Scheme (from 1 October 2025)
Deposit Requirement	Minimum 5% deposit required, but limited access based on scheme limits.	Minimum 5% deposit required, available to all first home buyers with no place limits.
Participation Limits	Capped at 50,000 places per year: 35,000 for first home buyers, 10,000 for regional buyers, 5,000 for single parents.	Unlimited places; no cap on the number of participants.
Income Caps	Income limits applied: $125,000 for individuals, $200,000 for couples.	No income caps; available regardless of income.
Property Price Caps	Lower price caps per region; for example, Sydney $900,000, Melbourne $800,000, Brisbane $700,000.	Higher price caps reflecting market prices, e.g., Sydney increased to $1.5 million, Melbourne $950,000, Brisbane $1 million.
Scheme Streams	Separate streams for first home buyers, regional buyers, and single parents with distinct place caps.	Merged streams: One general stream for all first home buyers; single parent stream remains supporting eligible guardians with a reduced 2% deposit.
Lenders Mortgage Insurance (LMI)	The scheme guarantees part of the loan so buyers with 5% deposit avoid LMI. Same under new scheme but with expanded access.	Same guarantee to avoid LMI, but expanded to all, helping reduce costs for more buyers.
Saving Time for Deposit	Limited by caps and income thresholds, took longer to save for deposit due to competitive restrictions.	Enables buyers to purchase homes years earlier due to easier access and no limit on scheme places. Savings time cut by up to 10 years in some markets (e.g., Brisbane).
New Home Super Saver Scheme	Available alongside the previous scheme, allowing voluntary super contributions towards deposit savings.	Continues unchanged but complements the expanded scheme well.
Eligibility for Single Parents	Single parent stream had place limits and individual income eligibility criteria.	Single parent stream expanded; no place limits; allows ownership with 2% deposit even if previously owner or divesting.