New Updates to the Home Guarantee Scheme Explained

From 1 October 2025, a number of important updates to the Home Guarantee Scheme will come into effect, creating new opportunities for Tasmanian buyers looking to enter the market sooner.

The scheme, designed to help eligible purchasers secure a home with a smaller deposit, will transition to what is now referred to as the General Stream. These changes are expected to make the scheme more accessible, particularly with the removal of income caps and increased property price thresholds.

It’s important to note that this is a Federal Government initiative and is not connected to Tasmania’s MyHome shared equity program.

Support for Tasmanian Buyers

In addition to the Home Guarantee Scheme, there are a number of incentives currently available to eligible first home buyers in Tasmania.

For those purchasing established homes, stamp duty may be waived on properties up to $750,000. Buyers considering a newly built home or construction project may also be eligible for a $10,000 First Home Owner Grant, which is set to increase to $30,000 from 1 January 2026. This applies to brand new homes that have not previously been occupied, with confirmation required to verify the property’s status.

Current Scheme Settings (Until 30 September 2025)

Under the current Home Guarantee Scheme, eligibility is subject to income thresholds and property price caps. Single applicants must earn no more than $125,000 per year, while couples are capped at a combined income of $200,000, based on their most recent Notice of Assessment.

Property price limits are currently set at $600,000 in the Hobart region and $450,000 across most of the rest of Tasmania.

A minimum deposit of 5% is required, which must be held in the applicant’s account for at least three months. In some cases, a rental ledger from a licensed real estate agent can be used as evidence of genuine savings, particularly where part of the deposit is being gifted.

Places in the scheme are also limited, with a national cap applied across lenders each financial year.

What’s Changing from 1 October 2025

From October, the updated General Stream introduces several significant changes aimed at improving accessibility.

Income caps will be removed entirely, allowing more buyers to qualify regardless of earnings. Property price thresholds will increase to $700,000 in the Hobart region and $550,000 across the rest of Tasmania, better reflecting current market conditions.

The deposit requirement remains at 5%, with the same provisions around genuine savings and rental history continuing to apply. Importantly, the number of places available will no longer be capped, removing one of the key limitations of the current scheme.

Changes to the Family Home Guarantee

The Family Home Guarantee will also be updated and renamed the Single Home Stream, with revised criteria taking effect from 1 October 2025.

This stream is designed to support eligible single parents or guardians. The updated scheme removes income limits and aligns property price caps with the General Stream, increasing them to $700,000 in Hobart and $550,000 elsewhere in Tasmania.

One of the most significant benefits is the reduced deposit requirement, with eligible applicants able to purchase with as little as 2%. As with the broader scheme, genuine savings requirements still apply, and rental history may be used as supporting evidence.

Applicants must be legally single and a guardian of at least one child under the age of 16. While previous home ownership is permitted, applicants must not own property at the time of settlement.

General Requirements to Consider

Across both streams, there are a number of consistent requirements. Applicants must be Australian citizens or permanent residents and must purchase either an established or newly built home to live in as their principal place of residence.

It’s also worth noting that some lenders may not support land-only purchases or construction loans under the scheme. If circumstances change in the future and the property is no longer owner-occupied, the loan may need to be transitioned into a standard lending arrangement.

Navigating Your Options

Understanding how these schemes apply to your situation can make a meaningful difference when planning your next move. Speaking with a finance broker can help ensure you meet the necessary requirements, avoid delays, and move forward with confidence throughout the buying process.

Final Thoughts

These upcoming changes represent a significant shift in accessibility for buyers, particularly with the removal of income limits and expanded property price caps. For many Tasmanians, this may open the door to home ownership sooner than expected.

If you’re considering buying, now is the time to explore your options and understand how these changes could work for you.