From 1 October 2025, Australia’s First Home Guarantee Scheme will undergo its most significant overhaul yet and for the normal Australian first home buyer, this presents both a massive opportunity to get into the property market.
While the changes appear promising on paper, they’re expected to unleash a wave of new demand, especially from high-income earners. That means price pressure, competition, and limited time to act. As a medical professional, you can take advantage of this potential surge.
Effect on Medical Professionals:
As many of you reading this already know, as a medical professional you already have access to 5% deposits for either a home or investment property. This enables you with an opportunity to buy into a market now that is primed for a potential uplift when these changes take effect.
Why acting before October matters
The market doesn’t wait for policy changes – it moves in anticipation.
- Sellers will price in the larger buyer pool.
- High-income households will re-enter markets they were previously excluded from.
- Lower-income first-home buyers — including junior doctors — risk being crowded out.
Those who act now can secure quality properties before the competition heats up and get the potential uplift that will come in October by the changes to the First Home Guarantee found below.
What’s changing in October?
1. Income Limits Removed
Previously, people earning over $125,000 (or couples over $200,000) were excluded. From October, the cap jumps to $250,000 for singles and $500,000 for couples.
This means higher income individuals and couples will now have access to a 5% deposit.
2. Higher Property Price Caps
In Brisbane and other QLD regional centres, the cap rises from $700,000 to $1,000,000. This brings family homes in desirable suburbs into reach – but also into the crosshairs of wealthier buyers.
3. Greater Borrowing Capacity
With interest rate cuts already underway and more expected in 2025, borrowing power could rise by ~15%. Combined with higher income and price thresholds, this will supercharge demand.
4. Rising Market Momentum
Confidence is returning to the property market. Auction clearance rates are strong, and sentiment is improving. Come October, expect a surge in activity – especially from high-income professionals who were previously locked out.
What medical professionals should do now
At Walshs, we’ve already begun preparing our clients to move early:
- Secure finance: Medico-specific lending allows 5% deposits with no LMI, 35-year terms, and future income is considered.
- Target quality suburbs: Use the higher price caps to buy in high-growth areas typically unreachable by first home buyers.
The expanded 5% deposit scheme will open the market to more people – and with that a surge in demand and likely price growth. For serious buyers, especially medical professionals with unique lending advantages, the smartest move is to get organised now — not in October.
If you wish to discuss how you can potentially partake in a price surge, speak to one of our financial advisers today.
