The Home Guarantee Scheme Expansion: 7 Things Perth First Home Buyers Need to Know in 2025

If you've been dreaming of buying your first home in Perth but feeling like it's just out of reach, October 2025 brought some game-changing news. The Australian Government rolled out major reforms to the Home Guarantee Scheme on October 1st, and honestly, it's transformed the landscape for first-time buyers across Western Australia.

These aren't just minor tweaks – we're talking about fundamental changes that have opened doors for thousands more Perth buyers who were previously locked out of the scheme. Whether you're earning above the old income limits or looking at properties that were once too expensive to qualify, there's a good chance you can now access this scheme.

Let's break down exactly what's changed and what it means for you as a Perth first home buyer.

1. No More Place Limits – Everyone's Welcome

Here's the big one that's got everyone talking: the scheme now has unlimited places available. Yep, you read that right – no more caps, no more racing against other buyers to secure one of the limited spots.

Under the old system, the scheme had a set number of places each year, which meant even if you were eligible, you might miss out simply because others got there first. It created this unnecessary pressure where buyers felt they had to rush their decisions or risk losing their chance altogether.

Now, every eligible Perth first home buyer can access the program without worrying about missing out. It's removed that competitive element and lets you focus on finding the right property at your own pace, rather than feeling pressured to jump on the first thing that comes along.

2. Income Caps Are Gone – Seriously, Gone

This is probably the most significant change for many Perth buyers. The government has completely removed income limits from the scheme. Previously, if you were earning more than $125,000 as a single applicant or $200,000 as a couple, you were automatically ruled out.

Think about it – in today's Perth job market, especially with the mining and resources sector, plenty of capable buyers were earning above these thresholds but still struggling to save a 20% deposit while juggling rent, living expenses, and everything else life throws at you.

Now it doesn't matter if you're earning $150k, $250k, or more – you can still access the scheme as long as you meet the other criteria. This has opened up opportunities for professionals, tradies, and middle-income earners who were caught in that frustrating middle ground of earning "too much" for assistance but not enough to easily save a massive deposit.

3. Property Price Caps Got a Massive Boost

The property price limits in WA received a substantial increase that's made a real difference to what Perth buyers can actually purchase. For Perth and regional centres, the cap jumped from $600,000 to $850,000. For other areas across Western Australia, it increased from $450,000 to $600,000.

That $250,000 increase in Perth is no joke – it's opened up entire suburbs that were previously out of reach. Instead of being limited to the outer fringes or smaller units, you can now consider established properties in more central locations, places with better transport links, schools, and amenities.

This change recognises the reality of Perth's property market. Let's be honest, finding a decent family home for under $600k in many Perth suburbs had become increasingly challenging. The new $850k cap gives you genuine choice and the opportunity to buy something you'll actually want to live in long-term.

4. Just 5% Down and No LMI

The scheme still requires just a 5% deposit while you avoid paying Lenders Mortgage Insurance (LMI). For those not familiar with LMI, it's insurance that protects the lender if you can't repay your loan, and it can cost tens of thousands of dollars.

Under the Home Guarantee Scheme, the government guarantee covers part of your loan, which means lenders are comfortable approving your application with a smaller deposit without requiring you to pay LMI. This can save you anywhere from $15,000 to $50,000 or more, depending on your loan amount.

What this means practically is that instead of needing to save $170,000 for a 20% deposit on an $850,000 property (plus LMI costs), you only need $42,500. That's a massive difference that can cut years off your saving timeline.

5. Way More Property Options Are Now Available

The expansion has dramatically increased the variety of properties Perth buyers can choose from. Before the changes, only about 33% of property markets nationwide were accessible under the scheme. After October 1st, this jumped to over 63% of markets.

For units specifically, the coverage is even better – around 94% of unit markets now fall within the scheme's eligibility. This gives you significantly more choice in both property type and location.

You're no longer limited to looking at properties in outer suburbs or accepting something that doesn't quite fit what you want. With the higher price caps and broader market access, you can be more selective and choose a property that genuinely suits your lifestyle, work location, and long-term goals.

This increased choice also means you can potentially select properties with stronger growth prospects. Instead of being forced into less desirable areas simply because they fit the old price limits, you can now consider locations with better infrastructure, amenities, and growth potential.

6. Simplified Regional Access

The government streamlined things by replacing the separate Regional First Home Buyer Guarantee with the expanded First Home Guarantee. If you're considering properties in regional WA, you don't need to navigate different schemes with varying rules anymore.

This simplification makes it much easier to understand your options whether you're looking at metropolitan Perth or regional areas like Bunbury, Geraldton, or Kalgoorlie. The same scheme, same rules, same process – just different price caps depending on the location.

For many buyers, this removes confusion and makes it easier to compare opportunities across different areas without having to understand multiple programs.

7. Multiple Lender Options to Choose From

The scheme operates through over 30 participating lenders across Australia, which means you've got options. Different lenders may have slightly different processes, interest rates, and additional criteria, so it's worth shopping around.

This is where working with a mortgage broker really pays off. We can help you compare what different lenders are offering, check your eligibility across multiple options, and find the best deal for your specific situation.

Each lender handles the scheme slightly differently, and some might be more suitable for your circumstances than others. Some might have faster processing times, others might offer better rates, and some might be more flexible with certain aspects of your application.

You can check your eligibility through Housing Australia's website, but having professional guidance through the application process can make things much smoother and help you avoid potential pitfalls.

What This All Means for You

These changes represent a fundamental shift in how accessible homeownership has become for Perth first-time buyers. The combination of unlimited places, no income restrictions, higher price caps, and just a 5% deposit requirement creates opportunities that simply weren't available before October.

If you were previously ruled out because of income limits or couldn't find suitable properties within the old price caps, it's worth revisiting the scheme. Even if you looked into it months ago and were told you weren't eligible, things have changed dramatically.

The key is to get your finances in order, understand your borrowing capacity, and start looking at what's available within the new price limits. With the scheme now accessible to so many more people, there's no reason to keep putting off that conversation about getting into the property market.

Getting Started

Before you dive in, it's worth having a chat with a mortgage broker who understands the scheme inside and out. We can help you figure out your borrowing capacity, check your eligibility, and guide you through the application process with participating lenders.

The scheme is fantastic, but like any government program, there are still specific requirements and processes to follow. Having professional guidance can save you time, prevent mistakes, and help ensure you get the best possible outcome.

If you're ready to explore your options under the expanded Home Guarantee Scheme, get in touch and let's have a conversation about how these changes might work for your situation. The door to homeownership in Perth just got a whole lot wider – it'd be worth finding out if you can walk through it.