First-home buyers in Gladstone are about to get their biggest opportunity in years. From 1 October 2025, the federal government is scrapping income caps, removing annual limits, and boosting the property price threshold from $550,000 to $700,000. If you’ve been priced out of Gladstone’s market, these changes could be exactly what you need.
The Regional First Home Buyer Grant ends in October, but it’s being replaced by something far better. The expanded First Home Guarantee removes the barriers that have been keeping genuine buyers on the sidelines.
No more income limits of $125,000 for singles or $200,000 for couples. No more competing for one of 35,000 annual spots nationwide.
What’s Changing From October 2025
The Regional Grant Disappears
Applications for the Regional First Home Buyer Grant close on 1 October 2025. If you’ve already reserved a place before this date, you’ll continue under current rules until settlement.
Integration Into First Home Guarantee
The regional scheme merges into the expanded First Home Guarantee, creating one streamlined programme instead of separate metropolitan and regional schemes.
No More Income Caps
The previous limits of $125,000 for individuals and $200,000 for couples are gone completely. Your income level no longer determines eligibility.
Unlimited Places
The annual cap of 35,000 guarantees nationally disappears. You won’t be racing other buyers for limited spots.
Higher Property Prices Allowed
Gladstone’s price cap jumps from $550,000 to $700,000. That’s an extra $150,000 worth of properties suddenly within reach.
The Numbers That Matter
Here’s what these changes mean for your wallet. Take a $650,000 family home in Gladstone, now within the new cap:
With First Home Guarantee:
- Deposit needed: $32,500 (5%)
- Interest rate discount: Same rate as if you had 20% deposit
- LMI covered by government
- Total upfront: Around $35,000-$40,000 including costs
Without the scheme:
- Deposit needed: $130,000 (20%) to avoid LMI
- Higher interest rate on 5% deposit without guarantee
- Plus LMI: $27,000-$35,000 if borrowing with 5% deposit
- Total upfront: $160,000+ or much higher interest rates
The difference is massive. The First Home Guarantee lets you secure the same interest rate with just 5% deposit as someone with 20% deposit would get. Without the guarantee, that 5% deposit means paying significantly higher interest rates over the life of your loan.
Understanding your borrowing capacity is crucial here. Use our Gladstone home loan calculator to see exactly what these changes mean for your situation.
Queensland’s Extra Support Stacks Up
Queensland hasn’t been sitting idle. The state’s enhanced First Home Owner Grant continues, offering $30,000 for new homes under $750,000. Contracts must be signed between November 2023 and June 2026.
How They Combine:
- First Home Guarantee: 5% deposit + no LMI + best interest rates
- QLD Grant: $30,000 toward purchase
- Your actual out-of-pocket: As little as $2,500 for a new $650,000 home
Queensland’s upcoming Boost to Buy scheme adds another option later in 2025:
- Up to 30% equity contribution for new homes
- Up to 25% for existing homes
- Just 2% deposit required
- Properties up to $1 million
These schemes work particularly well for buyers looking at first-home-buyer loans in Gladstone’s market.
How to Apply
The process runs through participating lenders, not directly through the government. Over 30 banks and financial institutions participate in the First Home Guarantee scheme.
Your Steps:
- Check eligibility at Housing Australia’s online tool
- Confirm Gladstone’s $700,000 price cap applies
- Contact a participating lender or mortgage broker
- Submit application through your lender to Housing Australia
Get your documents ready first: recent payslips, tax returns, bank statements, and proof of any additional income. Having everything prepared means you can move quickly when you find a property.
Working with an experienced home loan specialist can streamline this process significantly and ensure you’re maximising all available benefits.
Market Reality Check
More buyers with easier access mean more competition, especially in the $500,000-$700,000 range. Industry experts predict increased demand in this price segment once the changes take effect.
This isn’t necessarily bad news. More buyers often encourage more development, and Gladstone’s industrial growth supports ongoing housing supply. The removal of annual caps also means you’re not competing for limited scheme places.
However, don’t assume prices will wait. The combination of expanded access and general market conditions means delaying could cost you more than being prepared and ready to move.
Don’t Forget the Other Costs
The schemes don’t cover everything. A $650,000 Gladstone property still attracts:
- Stamp duty: $0 for first home buyers purchasing under $700,000 in Queensland
- Legal fees and inspections: $3,000-$5,000
- Ongoing costs: Rates, insurance, maintenance
Queensland offers complete stamp duty exemption for first home buyers purchasing properties under $700,000, making your upfront costs even more manageable.
Budget for ongoing homeownership costs too. A good rule is 1-2% of your property value annually for maintenance and repairs, plus regular rates and insurance.
Your Next Steps
Start preparing now for the October changes. Get a clear picture of your finances: savings, income, debts, and credit history. Use the lead time to fix any credit issues and build your savings buffer.
Connect with a mortgage broker experienced in government schemes. They can explain exactly what you’ll qualify for under the new rules and start pre-approval processes.
Research Gladstone areas where you want to live. Understanding local conditions, schools, transport, and development plans helps you make better property choices when you’re ready.
The Bottom Line
The expanded First Home Guarantee creates the most accessible path to homeownership that Gladstone buyers have seen in years. October 2025 opens a window of opportunity that combines federal support with Queensland’s existing grants.
Key benefits:
- No income caps
- Unlimited places
- $700,000 threshold
- 5% deposit with best interest rates
- No stamp duty on properties under $700,000
The difference between waiting and being prepared could cost you thousands in higher property prices and interest rates.
Ready to Get Started?
If you’re ready to explore your options or need guidance on navigating these new schemes, contact our team for personalised advice on making these changes work for your situation. We specialise in helping Gladstone buyers access all available government support and find the right home loan solution for their needs.
Our expertise in home loan refinancing, investment loans, and construction loans means we can guide you through every stage of your property journey, from your first home to building your investment portfolio.
Start your homeownership journey today with AJ Home Loans Gladstone – your local experts in making homeownership achievable.
