Buying your first home is an exciting milestone, but saving for a substantial deposit can often feel like the biggest hurdle. The good news for aspiring homeowners in Hobart is that recent changes to the Australian Government’s First Home Guarantee (FHG) could be your golden ticket to entering the property market sooner.
At Northern Suburbs Realty, we stay on top of the policies that matter to you. Let’s break down what these changes mean and spotlight the suburbs in Hobart’s northern corridor where demand is set to heat up.
What is the First Home Guarantee?
The First Home Guarantee is a federal government initiative designed to help eligible first-home buyers purchase a property with a deposit as low as 5%, without needing to pay for expensive Lenders’ Mortgage Insurance (LMI).
Traditionally, lenders require a 20% deposit to avoid LMI. Under the Guarantee, the government effectively “guarantees” up to 15% of the loan, giving lenders the security they need and buyers a much faster path to ownership.
The scheme has now been expanded, opening the door for more individuals, including those who have owned a property in the past but have been out of the market for at least 10 years.
Key Changes You Need to Know
- Expanded Eligibility: The scheme now includes permanent residents, not just Australian citizens.
- Friends & Family Can Apply: Joint applications are now open to friends, siblings, and other family members, not just married or de-facto couples.
- New Price Caps: The property price cap for Tasmania has been updated, allowing buyers more choice in a competitive market. For Hobart and the rest of the state, the current cap is $600,000.
These adjustments are game-changers, making homeownership more accessible for thousands of Tasmanians.
| Property price caps from 1 October 2025 | Current property price cap | Property price cap from 1 October ’25 |
|---|---|---|
| NSW – capital city/regional centre | $900,000 | $1,500,000 |
| NSW – other | $750,000 | $800,000 |
| VIC – capital city/regional centre | $800,000 | $950,000 |
| VIC – other | $650,000 | $650,000 |
| QLD – capital city/regional centre | $700,000 | $1,000,000 |
| QLD – other | $550,000 | $700,000 |
| WA – capital city | $600,000 | $850,000 |
| WA – other | $450,000 | $600,000 |
| SA – capital city | $600,000 | $900,000 |
| SA – other | $450,000 | $500,000 |
| TAS – capital city | $600,000 | $700,000 |
| TAS – other | $450,000 | $550,000 |
| ACT | $750,000 | $1,000,000 |
| NT | $600,000 | $600,000 |
Where is Demand Surging in Hobart’s Northern Suburbs?
With a price cap of $600,000, savvy first-home buyers are turning their attention to Hobart’s northern suburbs, which offer a fantastic blend of affordability, community, and growth potential. Based on current market trends, we see demand surging in these key areas:
1. Glenorchy
A perennial favourite, Glenorchy offers a vibrant mix of shops, parks, and essential services. Its diverse housing stock, from classic weatherboard homes to modern units, provides plenty of options well within the FHG price cap. Its connectivity to the city centre makes it a practical and popular choice.
2. Moonah
Fast becoming one of Hobart’s trendiest postcodes, Moonah is buzzing with new cafes, restaurants, and shops. It offers a unique urban-suburban feel and is perfect for buyers looking for a community with character and a short commute to the CBD.
3. Claremont & Austins Ferry
For those seeking more space and stunning water views of the River Derwent, Claremont and Austins Ferry are prime contenders. These suburbs provide a family-friendly atmosphere with great local schools and recreational facilities, representing excellent value for money.
4. Bridgewater & Gagebrook
Offering some of the most affordable entry points into the Hobart market, these suburbs are ideal for first-home buyers looking to maximize their budget. With significant ongoing investment in local infrastructure, they represent a smart long-term investment.
How to Seize This Opportunity
- Check Your Eligibility: Visit the official government website to confirm you meet the criteria for the First Home Guarantee.
- Get Pre-Approved: Speak to a mortgage broker or a participating lender to get your finances in order and secure a loan pre-approval. This puts you in a strong position when you find the right home.
- Talk to a Local Expert: The property market moves quickly. Partnering with a real estate agent who has deep knowledge of the northern suburbs is crucial.
The changes to the First Home Guarantee have created a powerful opportunity. If you’ve been dreaming of owning your own home in Hobart, now is the time to act.
Ready to start your property journey in Hobart’s northern suburbs? Contact the expert team at Northern Suburbs Realty today, and let us help you turn your homeownership dream into a reality!
