Buying your first home in Queensland just got a whole lot easier. From 1 October 2025, the Australian Government is making game-changing updates to the First Home Guarantee Scheme (FHGS) that could help thousands more Aussies finally break into the property market.
If you’ve been struggling to save a deposit or thought you earned too much to qualify for government help, these changes may be the opportunity you’ve been waiting for.
What’s Changing from October?
The First Home Guarantee has always been designed to help Australians buy with just a 5% deposit. But until now, it’s been limited by strict rules. From October, that’s about to change:
1. No More Quotas
The old cap of 35,000 places per year is gone. From October, if you’re eligible, you’re in. No more missing out just because you applied too late in the year.
2. Income Caps Removed
Income thresholds of $125,000 for singles and $200,000 for couples are being scrapped. Even households with higher incomes who still can’t save a full 20% deposit will now qualify.
3. Property Price Caps Increased in Queensland
- Brisbane & South East QLD: Up to $1,000,000
- Regional QLD: Up to $700,000
How Does the Guarantee Work?
Normally, buying with less than a 20% deposit means paying expensive Lenders Mortgage Insurance (LMI). With the FHGS, you only need 5% down, and the government guarantees the other 15%. This removes the LMI cost — saving many buyers tens of thousands of dollars.
What It Means for Queensland Buyers
- Greater Access – More people qualify, including moderate- to high-income households.
- More Choice – Higher property caps mean you’re not locked out of central Brisbane, the Gold Coast, or high-growth regional areas.
- Faster Entry – With just 5% required, you can get into the market years earlier.
- Increased Competition – With more buyers now eligible, demand for quality entry-level properties will likely rise.
What It Means for Queensland Buyers
- Not all banks and lenders participate.
- Each lender has different conditions and rates.
- A 5% deposit can stretch your budget if not managed carefully.
At Grow Well Financial, we:
- Connect you with over 40 lenders — including smaller institutions you may never find on your own.
- Tailor your loan strategy to protect your cash flow and long-term goals.
- Simplify the paperwork, so your application is stress-free.
- Help you compare loan structures beyond just interest rates, ensuring your first home is a secure step forward
The Bottom Line
The October 2025 changes to the First Home Guarantee Scheme (FHGS) are the biggest shake-up to first-home buyer assistance in years. By removing quotas and income limits, and raising property caps, thousands more Queenslanders will finally be able to make the leap into homeownership.
But with more buyers entering the market, being prepared will be critical. That means knowing your borrowing capacity, having pre-approval in place, and having a clear strategy before you start making offers.
Ready to explore your options?
The team at Grow Well Financial is here to guide you every step of the way. Talk to us today about how the new First Home Guarantee could help you secure your first home in Queensland with confidence.
