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Australia Expands First Home Guarantee Amid Housing Concerns

8/26/2025

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Summary

Story summary

The Australian government is expanding the First Home Guarantee scheme, effective October 1, by removing income caps and raising property price limits.
Experts caution that this may increase competition and worsen housing shortages.
Treasury forecasts a 0.5% price increase over six years, while the Real Estate Institute endorses the changes for affordability.
First-home buyers are advised to be cautious of high mortgage debt risks linked to low deposit schemes.

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Story summary

The Australian government is expanding the First Home Guarantee scheme, effective October 1, by removing income caps and raising property price limits.
Experts caution that this may increase competition and worsen housing shortages.
Treasury forecasts a 0.5% price increase over six years, while the Real Estate Institute endorses the changes for affordability.
First-home buyers are advised to be cautious of high mortgage debt risks linked to low deposit schemes.