Get Ready First Home Buyers: Your Dream Home Journey Starts This October

From October, first home buyers will be able to purchase a home with as little as a 5 per cent deposit and without paying costly Lenders Mortgage Insurance.Under the scheme, the government will guarantee part of your loan, making it easier to get approval and cutting down the time it takes to save. For many buyers this could mean saving tens of thousands of dollars and shaving years off the deposit timeline.

What has changed from 1 October 2025:

• No place limits: every Australian first home buyer who has saved a 5 per cent deposit can apply.
• No income caps: even if your income is higher, you can still access the scheme.
• Higher property price caps: price caps have been lifted to reflect today’s market.
• Regional access simplified: Regional First Home Buyer Guarantee will be replaced by the First Home Guarantee.

For example, a buyer in Bendigo can now purchase a $600,000 home with a $30,000 deposit and avoid paying about $25,000 in mortgage insurance. That is money that goes towards your own loan, not wasted on rent or fees.

The new property price caps

The updated property price limits are another big win, making more homes eligible under the scheme.

• In Victoria’s capital city and regional centres, the cap has moved from $800,000 to $950,000.
• In other parts of Victoria, the cap remains at $650,000.

This change opens the door to a much broader range of properties across metropolitan and regional areas.

Steps to take on your first home buyer journey

If you are considering taking advantage of the scheme, here are the key steps:

1. Check your eligibility using the Home Guarantee Scheme Eligibility Tool A new version of the tool will be available from 1 October 2025, but in the meantime, you can read through the information provided by Housing Australia to understand the criteria.
2. Review the new property price caps for your area so you know exactly what budget range you can work within.
3. Speak with a participating lender who will be able to submit your application to Housing Australia and guide you through pre-approval. You can also book a free consultation with Oakbury Financial Group, our trusted mortgage broker, for personalised guidance.
4. Find your place to call home with the confidence of knowing you can buy sooner. Explore Sherridon’s lower-cost House & Land packages, designed as perfect first home buyer options.

Madison - Silverwood Estate - Traralgon 

How Sherridon Homes can guide you

At Sherridon Homes, we are passionate about helping first home buyers take advantage of opportunities like this. With over 20 years of experience and more than 14,000 homes delivered, we understand the journey and how to make it simple and exciting.

We offer more than 90 flexible home designs, award-winning display homes and sales offices at 20 locations across Melbourne and regional Victoria, with expansion underway into southern New South Wales. Every home is backed by our Lifetime Structural Warranty*, giving you peace of mind long after you move in.

Our team is here to support you every step of the way, from understanding the scheme to handing you the keys to your very first home.

Ready to take the next step?

This scheme is one of the most significant changes for first home buyers in years. If you are ready to start exploring your options, we would love to help. Contact our team today and let’s turn your dream of home ownership into reality.