If you’ve been struggling to break into Brisbane’s competitive property market, the latest update to the scheme could finally make homeownership achievable. Here’s some good news: the Federal Government has just expanded the First Home Guarantee (FHG) scheme, and it could make your dream of owning a home in Brisbane a whole lot more achievable.
From October 2025 (brought forward from 2026), the FHG will:
- Let you buy with just a 5% deposit
- Scrap the old income caps
- Raise the property price cap in Brisbane from $700,000 to $1,000,000
It’s a wonderful scheme that first home buyers can avail. In this blog, we’ll break down the First Home Guarantee (FHG) updates and explain how Brisbane Home Loans, a trusted mortgage broker in Brisbane, can guide you through the process with ease.
Why the New $1M Cap Matters in Brisbane
Until now, the $700,000 cap simply didn’t reflect Brisbane’s reality. Median house prices in many inner and middle-ring suburbs have soared well beyond that mark, making it nearly impossible for first-home buyers to use the scheme.
With the new $1M limit, more properties in sought-after suburbs like Indooroopilly, Carindale, Holland Park, and Chermside fall within reach. Even townhouses and larger apartments in premium areas now qualify.
This gives buyers much more choice without forcing them into outer suburbs or compromising on lifestyle.
No Income Cap = More Buyers Can Apply
Previously, strict income caps meant many dual-income professionals couldn’t qualify, even if they genuinely needed help saving for a deposit.
With those limits gone, any first-home buyer can apply, whether you’re a nurse, teacher, tradie, or corporate professional. That means more people in Brisbane will be able to take advantage of the scheme without worrying about being “too high income” to qualify.
Thinking about buying your first home in Brisbane?Let Brisbane Home Loans guide you through the First Home Guarantee and help you secure the right loan.
What Does a 5% Deposit Really Mean?
One of the biggest barriers to homeownership is saving the traditional 20% deposit. Under the FHG, you only need 5%, and the government guarantees the other 15% so you can avoid lenders’ mortgage insurance (LMI).
Here’s what that looks like in real terms:
- $700,000 property (old cap): You’d need $35,000 saved.
- $1,000,000 property (new cap): You’d need $50,000 saved.
That’s a significant difference, but still far more achievable than a 20% deposit ($200,000 on a $1M home). Plus, you’ll save up to $30,000 in LMI costs.
| House Price | Time to Save a 20% Deposit* | Time to Save a 5% Deposit* | Average Rent Saved by Buying Sooner** |
|---|---|---|---|
| $500,000 | 7 years | 2 years | $87,500 |
| $600,000 | 8 years | 2 years | $126,000 |
| $700,000 | 9 years | 2 years | $171,500 |
| $800,000 | 11 years | 3 years | $224,000 |
| $900,000 | 12 years | 3 years | $283,500 |
| $1,000,000 | 13 years | 3 years | $350,000 |
*Assumes a first-home buyer with an average annual income of $100,000, saving 15% of income yearly (based on CoreLogic Housing Affordability Report, Nov 2024).
**Rent savings estimated using a national house gross rental yield of 3.5% (Cotality Home Value Index, July 2025).
What Brisbane Suburbs Are Now in Reach?
With the new $1M threshold, here’s what’s now possible for first-home buyers in Brisbane:
- Inner-city apartments & townhouses
South Brisbane, Newstead, and Fortitude Valley options that were previously out of budget
- Family homes in middle-ring suburbs
Carindale, Stafford Heights, and Kedron, where prices often hover in the $800k – $950k range
- Larger properties in outer suburbs
Houses in Redland Bay, Springfield, and North Lakes, often well below $1M
This expansion finally reflects Brisbane’s property market and gives buyers more freedom to choose a home that suits their lifestyle.
What Else Is Changing in Housing Policy?
The expanded FHG is part of a broader housing push. Alongside the scheme, the government is also:
- Fast-tracking 26,000 homes stuck in environmental approvals.
- Putting a 7-year pause on new building regulations to ease pressure on builders.
- Committing to building 1.2 million homes nationwide this decade.
For Brisbane buyers, this means more supply is expected over time, but the FHG expansion helps now, when affordability is most urgent, something a trusted mortgage broker in Brisbane can guide you through effectively.
Worried about rising prices in Brisbane’s housing market? At Brisbane Home Loans, we compare multiple lenders to find you smarter loan options.
Should You Act Now or Wait?
The changes officially start in October 2025. But that doesn’t mean you can’t start preparing today.
- Get pre-approval to understand what you can borrow.
- Track suburbs that fit under the new $1M cap.
Work with a mortgage broker who understands Brisbane’s market and can guide you through the FHG process.The sooner you prepare, the better positioned you’ll be to secure a property when the changes take effect.
Not sure where to start? Our mortgage brokers in Brisbane can walk you through your options before the changes kick in.
Conclusion
For too long, first-home buyers in Brisbane have been squeezed by rising property prices and outdated government thresholds. The expansion of the First Home Guarantee, especially the lift from $700k to $1M, finally acknowledges Brisbane’s market reality.
If you’re a first-home buyer in Brisbane, this could be the breakthrough you’ve been waiting for. With only a 5% deposit, no income cap, and more properties eligible, the path to homeownership just got much clearer.
Want to know if you qualify or how to take advantage of the new scheme?
Our team of Brisbane mortgage brokers can help you understand your options, calculate your borrowing power, and find a property that fits within the new FHG rules.
Contact us today and let’s make your first home in Brisbane a reality.
