Big changes coming to the First Home Guarantee: What buyers in Croydon, Ringwood, and surrounding areas need to know

From 1st October 2025, the rules around buying your first home in Australia are changing and they could work in your favor. If you’ve been dreaming of getting onto the property ladder in suburbs like Croydon, Ringwood, Mooroolbark, Kilsyth, or Lilydale, now might be the perfect time to act.

The First Home Guarantee (previously the First Home Loan Deposit Scheme) has been updated to make buying a home more achievable for thousands of Australians, including those right here in Melbourne’s eastern suburbs.

1. No More Income Limits

Previously, buyers in higher-paying roles or dual-income households in Croydon or Ringwood often missed out because of income thresholds. From 1 October, those restrictions disappear.

✅ This means professionals and families in areas like Mooroolbark and Kilsyth can now qualify, even if they earn above the old limits.

✅ It also means greater borrowing power; so buying closer to Lilydale or within a short commute to the CBD is more realistic.

2. New Purchase Price Caps

Updated price thresholds mean buyers in Melbourne’s eastern suburbs have more choice. Under the new rules, you may be able to purchase homes up to:

This is great news if you’ve been priced out of Croydon or Ringwood in the past — the new caps make these areas much more accessible.

3. Returning Buyers Are Welcome

If you’ve lived in Croydon or Kilsyth but sold up more than 10 years ago, you now have a second chance to enter the market under the scheme. Life changes happen — and this update recognises that.

4. Only a 5% Deposit Required

Whether you’re eyeing off a family home in Lilydale or a townhouse in Ringwood, you’ll only need a 5% deposit. And with the government guarantee in place, you won’t have to pay Lenders Mortgage Insurance (LMI) — saving you thousands.

Why Work with Finsync in Melbourne’s East?

Buying your first home is a huge milestone, but navigating loans can be complex. That’s where we come in.

At Finsync, we:

• Work with first home buyers across Croydon, Ringwood, Mooroolbark, Kilsyth, and Lilydale.
• Compare loans across 60+ lenders to find the right fit.
• Help you calculate your borrowing power based on local property prices.
• Guide you step-by-step so you can buy with confidence.

Take the First Step Today

These changes don’t take effect until 1 October 2025, but the smartest buyers in Melbourne’s east are already preparing. By getting pre-approved now, you’ll be ready to make an offer when the new rules kick in.

👉 Ready to explore your options?

• Book a no-obligation chat
• Email: brock@finsync.com.au
• Call: 03 9876 8115

Finsync: Simplifying finance, delivering confidence.