The 2025 federal election is behind us, and with Labor securing another term, there’s renewed momentum for housing reform — particularly for first-home buyers. So, what could this mean for you if you’re hoping to get on the property ladder? Let’s break it down.
Whilst these pledges still need parliament approval, they are expected to be delivered on. The government is stepping in with new and expanded support initiatives that could help turn your homeownership dreams into reality.
1. Expanded Access to the First Home Guarantee (5% Deposit plus costs, No LMI)
One of the standout promises from Labor is the expansion of the First Home Guarantee scheme. Here’s what’s changing:
- No more income caps – more people will qualify, no income restrictions.
- Higher property price caps – so you’re not priced out of the market.
- Unlimited loan guarantees – meaning broader access across the board.
The scheme allows eligible first-home buyers to purchase with just a 5% deposit plus costs (stamp duty, settlement fees) and no lenders mortgage insurance (LMI), with the government guaranteeing the remaining 15%. That’s a massive saving — LMI can often run into the tens of thousands. It’s worth noting though that if you have more than the 5% plus costs in savings you will need to use your savings.
Over 150,000 Australians have already bought their first home using this initiative. You could be next.
2. Help to Buy Scheme – Shared Equity with the Government
Labor’s long-awaited Help to Buy shared equity scheme is also finally kicking off later this year. Here’s how it works:
- You only need a 2% deposit.
- The government will co-purchase up to 30% of an existing home or 40% of a new build.
- You won’t pay rent on the government’s share.
The scheme is designed to bring ownership within reach for more Australians. The income limits are increasing to $100,000 for singles and $160,000 for couples and single parents — meaning more people will qualify. More information will be available from Help To Buy Scheme Homepage once availbale.
Most of the new purchase price caps will be linked to the current median house price in each state and territory. Examples below:
- Sydney: up to $1.3 million
- Melbourne: up to $950,000
- Brisbane: up to $1 million
- Regional centres also see boosted limits
3. 100,000 Homes Reserved for First-Home Buyers
To help level the playing field, Labor plans to invest $10 billion into building 100,000 new homes exclusively for first-home buyers — no competition from investors with deeper pockets. This initiative aims to give genuine buyers a fair go in what has been a competitive market. Again details are a little light at the moment, but we will reveal more once released.
Need Help Navigating Your Options?
At Fox Mortgages, we’re passionate about helping first-home buyers make informed choices. Whether it’s leveraging government schemes, comparing lenders, or working out what you can afford — we’re here to guide you every step of the way.
There’s never been a better time to explore your options.
Need a free review of your poistion? Book an appointment with the Fox Mortgages team today.