From 1 October 2025, the Australian Government is expanding its First Home Guarantee Scheme, opening doors for thousands of young Western Australians. With higher property price caps and increased accessibility, it’s set to transform the property landscape as we know it.
The new scheme
In the current market, it is difficult to find a house or house package that fits within the property price cap of the existing housing scheme. As it stands, only two of Perth’s suburbs have a median house value that is equal to, or below, the current cap of $600,000 – keeping home ownership just out of reach for many prospective first home buyers.
The new scheme is aimed at levelling the playing field. Not only will it give you the keys to unlock more desirable housing, but it will also cut down the time it takes to save for a new home!
What’s changing?
- No LMI: With the new scheme, you require as little as a 5% deposit on your home, saving you thousands in rent. You won’t need to pay any additional Lenders Mortgage Insurance (LMI), with the government acting as a guarantor for up to 15% of the loan.
- No Place Limits: With the new scheme, there’s no rush. Once you have saved the 5% deposit money, you can apply – there are no limitations when it comes to available grants.
- Higher Property Price Caps: The scheme will increase the property price cap from $600,000 to $850,000, opening first-time home buyers to a larger, more attainable housing market in more desirable suburbs. These new caps more accurately reflect the median house prices across WA, with the number of eligible properties increasing from 13.9% to 51.8%.
- Accessibility: Not only is the scheme aimed at first home buyers, but it can also apply to those who haven’t owned a property in Australia for the last 10 years, making home ownership attainable for all.
- No Income Caps: Previously, you wouldn’t be eligible for the scheme if your income exceeded $125,000 for singles or $200,000 combined for couples. This limit has now been removed, providing assistance to higher-income earners to apply for properties and house and land packages.
Taking advantage of the Grant with New Choice Homes
- Keep an open mind when visiting display homes—many feature both standard inclusions and upgrades.
- Ask a New Homes Consultant to walk you through a display home and clarify inclusions vs. upgrades.
- Request a detailed specification list to ensure you know exactly what you’re getting.
- Visit our Prestart Selections Room to preview and finalise your prestart selections.
- Confirm all upgrades and costs before signing your contract to avoid unexpected variations.
At New Choice Homes, we believe in taking the hard work out of buying your first house. From Yanchep to Lakelands, our house and land packages let you choose from an extensive range of Perth homes for under $850,000. With the new grant, our new home finance team can work with you to open a world of housing opportunities. The new grant does more than just help you get your foot in the door; it opens up a new budget for all the extra inclusions that turn a house into a home. Imagine a home with raised ceilings, premium flooring, or an upgraded kitchen—the grant can help you make these a reality.
Not only may you be eligible for the new government scheme, but we can offer you additional financial solutions. Through our Free Financial assessment, you can receive expert, personalised assistance to help develop a plan that’s tailored to you. Our team will guide you through all your options, including the First Home Owners Grant and Keystart Loans.
Based on the response to previous grants, demand will soon rise, so make sure you get in quick! To find out more and enquire about your eligibility, contact us today – we’re here to help every step of the way through your new home journey.
