From 1 October 2025, the federal government is rolling out major updates to the Home Guarantee Scheme (HGS) – and for first-home buyers and families across Sydney, it could be a game-changer.

Here’s what you need to know and how to prepare ahead of Spring’s busy property season.

What’s Changing?

The expanded HGS includes:

• Unlimited places – no more missing out due to capped allocations.
• No income caps – dual-income families previously excluded can now qualify.
• Higher price caps – expected to be around $1.5m in Sydney, postcode-dependent.
• 5% deposits without LMI – the government guarantees part of the loan, saving buyers $20k–$40k+ in Lenders Mortgage Insurance.

What This Means for Sydney Buyers

These changes remove key barriers that have stopped many from entering the market. Combined with NSW’s existing support – like stamp duty relief up to $1m and the $10,000 First Home Owner Grant (for new builds) – it’s now more achievable to buy with less upfront cash.

Market Impacts: What to Expect This Spring

With changes landing in peak Spring selling season, we expect:

• More competition in the $700k–$1.6m range, especially for townhouses, units, and family homes.
• Increased buyer activity in suburbs like the Inner West, Lower North Shore fringe, St George/Sutherland, and parts of Western Sydney.
• Many buyers delaying contracts until after 1 October to qualify, intensifying October auctions.

If you’re already in the market or planning to buy this year, expect stronger competition, fewer days on market, and firmer price guides in the months ahead.

What About Buyers Above the Cap?

Even if you’re buying above the new HGS limits, you’ll still feel the flow-on effects:

• Demand under $1.5m will push some buyers up into the $1.6m–$2m range.
• Sellers just above the cap may raise price expectations.
• Families upgrading from sub-$1m homes may benefit from stronger sale prices – helping them move up the ladder.

NSW Schemes That Still Stack

Eligible buyers can combine the HGS with:

• Stamp duty exemptions on homes up to $800k, and concessions up to $1m.
• $10,000 FHOG for new builds or substantially renovated properties.

Together, these supports can significantly reduce the upfront cost of buying.

Smart Buyer Moves: What to Do Now

• Get pre-approved early with lenders offering the HGS.
• Know your suburb cap – Housing Australia offers a postcode checker.
• Line up your legal & building teams to act fast.
• Be auction-ready – know your walk-away price and consider strong pre-auction offers.
• Compare new builds vs established – FHOG can tilt the scales.

How a Buyer’s Agent Can Help

These changes lower financial barriers – but not the complexity of the market.

Working with a professional buyer’s agent can help you:

• Identify the best value properties (on and off market)
• Analyse real market value
• Negotiate strategically
• Avoid costly mistakes in contract or due diligence

Final Word

The 1 October changes to the Home Guarantee Scheme open the market to a wider group of Sydney buyers. But they’ll also increase competition right as Spring activity peaks.

Preparation will be key – and timing matters.

If you want help navigating this unique window of opportunity, our team at Buyers Market Buyers Agents is here to support your next move.

Book a free strategy call today and get ahead of the Spring rush.