2025 News for First Home Buyers

Buying your first home is a big milestone—and staying informed can make all the difference. With government schemes evolving, market conditions shifting, and new opportunities emerging, it’s never been more important to keep your finger on the pulse.

This page is your go-to hub for the latest news, updates, and insights tailored specifically for first home buyers in Australia. From changes to the First Home Owners Grant, to the expanded First Home Guarantee, we’ll keep you informed on everything that could impact your journey to home ownership.

First Home Buyer Guide

Am I ready to buy a house?

What is a first home buyer?

Will I be able to get a loan?

Is my Credit History and Rental History important?

Buying versus renting

How much deposit do I need?

Understanding deposits

How to meet the banks genuine savings rules

Deposit calculator

Grants and schemes for FHB's

First Home Owner Grants

First Home Guarantee Scheme

Latest government announcements to help FHB’s

Getting finance pre-approval

Pre-approval process

Benefits of getting a pre-approval

Are all pre-approvals equal?

Mortgage brokers vs Banks?

Why use a mortgage broker?

How much does a mortgage broker cost?

Are all mortgage brokers equal?

How to buy a property

Pre-approval process

Benefits of getting a pre-approval

Are all pre-approvals equal?

Preparing for settlement

Going unconditional on the property contract

What does a converyancer/solicitor do for a property purchase?

What happens on the day of settlement?

Managing your mortgage

Understanding loan repayments

Extra repayments, redraw and offset accounts

When is the right time to review your home loan?

We also cover key market trends, like potential interest rate cuts and shifting property values , so you can make confident decisions whether you’re saving for a deposit or ready to buy.

And if you’re wondering how these changes affect your borrowing power or eligibility, our Melbourne-based mortgage brokers at Acceptance Finance are here to help. Reach out anytime for personalised advice and support.

December 2025

Help to Buy

The Australian Government will be launching the “Help to Buy” Scheme from the 5th of December, 2025. Under this scheme, more Australians will be assisted in to their first home through a shared equity arrangement with the federal Government. At this stage, Australians in all states and territories except for Western Australia will have access to this arrangement. Western Australians are expected to access this scheme from early 2026.

Under the scheme, the federal Government will contribute a percentage of the purchase price of established and new homes, reducing the deposit burden on first home buyers. Eligible Australians will only need a 2% deposit, with the balance being loaned by one of two lenders: Commonwealth Bank and Bank Australia.

While the bank loan will be paid in regular instalments as usual, the Government’s stake will only need to be repaid once the home is sold. Accepted applicants will also get the opportunity to make voluntary repayments to the Government. Applicants may also buy back all, or a portion of, the Government’s equity through additional lending.

July 2025

Home guarantee scheme changes: What that means for first home-buyers

As the new financial year begins, 50,000 new places have been released under the Home Guarantee Scheme (HGS), providing more opportunities for eligible buyers to enter the property market with a low deposit and no lenders mortgage insurance (LMI).

The 2025–26 allocation includes:

35,000 places under the First Home Guarantee
10,000 places under the Regional First Home Buyer Guarantee
5,000 places under the Family Home Guarantee

These initiatives are designed to support a wide range of buyers, including first-time buyers, regional purchasers, and single-parent households, by allowing them to purchase a home with as little as a 5% deposit, while the government guarantees up to 15% of the loan.

From January 2026, significant updates to the Home Guarantee Scheme will make it even more accessible:

Income and property price caps will be removed for the First Home Guarantee, meaning more buyers will be eligible regardless of their earnings or the value of the home.
Property price caps under the scheme will increase across all areas. For example, in Sydney, the cap will rise from $900,000 to $1.5 million, reflecting current market conditions.
The government will continue to guarantee up to 15% of the home loan, enabling eligible buyers to avoid costly lenders mortgage insurance.

With 50,000 new places now available and broader changes on the way in 2026, the Home Guarantee Scheme continues to be a valuable pathway to home ownership for thousands of Australians.

Whether buying in the city, regionally, or as a single parent, the expanded program provides more flexible and accessible options for entering the property market with a low deposit and no LMI.

July 2025

WA expands Keystart program to boost access to affordable housing

The Western Australian government has expanded its affordable housing efforts through Keystart, introducing two new loan products to help more people enter the property market amid rising home prices.

Keystart has launched a low-deposit modular loan designed to help more Western Australians purchase modular homes, particularly in regional areas where traditional builds can be expensive and slow due to limited access to trades.

Modular construction has become increasingly popular across the state, offering a faster and more cost-effective alternative to traditional housing. This new loan product lowers the deposit barrier and provides additional progress payments to help builders maintain cash flow and deliver homes more efficiently.

With demand growing for quicker, more affordable builds in both regional and metropolitan WA, this product aims to support both home buyers and the broader construction industry.

A second initiative, a shared equity loan, is set to launch in September and will focus on supporting the purchase of newly built or under-construction apartments, townhouses, and other multi-residential dwellings.

Backed by a $210 million investment, the shared equity scheme will make up to 1,000 loans available. Under the program, Keystart will partner with eligible buyers by contributing up to 35% of the home’s value, capped at $250,000. Buyers will only need to finance the remaining portion, reducing both the upfront cost and ongoing mortgage repayments.

This model is designed to improve access to home ownership for lower and middle-income households, while also supporting the delivery of more affordable housing stock across the state.

April 2025

Buy a Home With Just a 2% Deposit? The Government’s New Scheme Could Make It Happen

A major new initiative from the federal government is promising to shake up the housing market and help thousands of Australians buy their first home with as little as a 2% deposit. Known as the Help to Buy scheme, this shared equity program allows eligible buyers to co-purchase a property with the government, which reduces both the deposit and the mortgage size required.

Under the scheme, the government will contribute up to 40% of the purchase price for new builds and up to 30% for established homes. That means buyers only need to cover their portion of the property’s cost, significantly lowering their monthly mortgage repayments. In many cases, the savings could amount to hundreds or even thousands of dollars a month.

Because of the government’s equity contribution, buyers only need to come up with a 2% deposit, making homeownership much more accessible for Australians who have been priced out of the market. With rising living costs and stagnant wage growth making it harder than ever to save for a home, this program could be a game-changer for first-time buyers.

The Help to Buy scheme is designed to assist around 40,000 Australians in getting on the property ladder. It was formally legislated by the Commonwealth in late 2024 and expanded in early 2025 to include higher income and property price thresholds, making it available to a broader group of potential buyers.

While the program has been officially established at the federal level, it can only operate in states and territories where enabling legislation has been passed. As of May 2025, Queensland, Victoria, and New South Wales have passed the necessary laws. Other states are expected to follow, although a formal nationwide launch date is still to be confirmed.

For first-home buyers struggling to save a traditional 20% deposit or meet strict mortgage lending criteria, the Help to Buy scheme could open the door to homeownership far sooner than expected. With less money required upfront and lower monthly repayments, it could represent one of the most impactful housing support policies in years.

April 2025

Huge Win for First-Home Buyers: HECS Debt May No Longer Hurt Your Borrowing Power

In a significant shift for first-home buyers with student loans, new lending rules are making it easier to qualify for a mortgage in 2025. Banks are now rethinking how they treat HECS-HELP debt in home loan assessments, changes that could increase borrowing power by tens of thousands of dollars for many buyers.

Previously, student debt was treated much like a personal loan or credit card. Even though HECS-HELP loans don’t charge interest and only require repayments once a borrower earns above a certain income threshold, banks still factored those repayments into serviceability tests. As a result, many aspiring homeowners found their borrowing capacity reduced, sometimes by as much as $90,000, despite having solid incomes and healthy savings.

Now, some major lenders have introduced new policies that relax these rules. For borrowers with a small remaining HECS balance (particularly those close to paying it off) banks may no longer include the loan in their affordability calculations. Others are applying lower repayment estimates for borrowers with longer repayment timelines, making it easier to meet serviceability requirements.

This update could provide a real boost for recent graduates and young professionals who are ready to enter the property market but have been held back by student debt. For many, the reduced impact of HECS on borrowing capacity could be the difference between securing a home loan and falling short.

Alongside these changes, the government is also set to reduce existing HECS-HELP balances by 20% from June this year. With approximately three million Australians currently holding HELP debts worth more than $43 billion, this adjustment will further ease the financial burden on graduates and improve their ability to qualify for finance.

For first-home buyers, these developments come at a time when other lending conditions, such as interest rate cuts and new government support programs, are also shifting in their favour. Together, these changes are making it more achievable for young Australians to enter the housing market, especially those who have struggled under previous assessment models.

May 2025

Interest Rate Cuts in 2025: What They Mean for the Housing Market and First-Home Buyers

After keeping the official cash rate on hold at 4.35% throughout 2024, the Reserve Bank of Australia (RBA) began reducing interest rates in early 2025, in line with easing inflation and slowing economic growth. The first cut came in February, bringing the cash rate down to 4.10%. This was followed by a further 25 basis point reduction in May, lowering the rate to its current level of 3.85%.

Forecasts suggest this is only the beginning. Major banks are now predicting a series of rate cuts throughout the rest of the year. Expectations include a steady drop in the cash rate each quarter, potentially reaching as low as 2.25% by the end of 2025. Some projections extend into early 2026, pointing to a gradual return to more moderate interest rate levels as global and domestic growth continue to slow.

These predictions are based on a range of economic indicators, including inflation trending lower, reduced consumer spending, and weaker global growth conditions. As a result, the RBA appears to be shifting toward a less restrictive monetary policy stance.

For the housing market, lower interest rates typically lead to increased buyer demand. As the cost of borrowing decreases, more people are able to access finance, which often translates to higher levels of activity in the property market. This can increase competition among buyers and put upward pressure on property prices in some areas.

For first-home buyers, interest rate cuts can offer several advantages. Lower rates reduce monthly loan repayments, making it easier to qualify for a mortgage and manage ongoing costs. This can help buyers enter the market sooner, especially those who may have been priced out during periods of higher interest rates. In some cases, improved borrowing capacity may also allow buyers to consider properties in more desirable locations or with better features.

However, increased competition from other buyers can also drive up property prices, so first-home buyers should act strategically. Securing pre-approval, understanding borrowing capacity, and working with a broker can help buyers make confident, informed decisions in a fast-moving market.

With further rate cuts on the horizon, the rest of 2025 may present new opportunities for buyers, particularly those ready to take advantage of improved affordability and changing lending conditions.

April 2025

Coalition pushes to ease home loan rules by cutting APRA buffer

The Coalition has announced plans to overhaul the current rules that guide how banks assess home loan applications, with a focus on easing the path to homeownership. Central to the proposal is a pledge to reduce the serviceability buffer set by the Australian Prudential Regulation Authority (APRA), a move they believe will make it easier for more Australians to qualify for a mortgage.

The serviceability buffer requires lenders to assess whether a borrower could still afford their repayments if interest rates were to rise by a set margin, which is currently 3 percentage points above the actual loan rate. While this safeguard was introduced to ensure responsible lending, critics argue that it has become overly restrictive in the current economic environment, locking out buyers who could otherwise manage their repayments.

If elected, the Coalition has stated it would direct APRA to lower the buffer, which could increase borrowing power for many potential homebuyers. By reducing the margin that lenders must apply when assessing a loan application, more Australians may find themselves eligible for finance, particularly those who have been squeezed out due to high interest rates and tight lending rules.

Industry groups across the mortgage and property sectors have backed the idea, pointing to rising house prices and cost-of-living pressures that make it harder for buyers to meet today’s lending benchmarks. A lower buffer would not only increase loan accessibility but also reflect the stabilising interest rate environment and reduced risk of further large hikes.

The proposed change is part of a broader push to make homeownership more attainable, particularly for first-home buyers and middle-income earners who are currently struggling to get their foot on the property ladder. While the details of how the buffer would be adjusted have yet to be confirmed, the announcement signals a clear intention to reform the lending framework in favour of greater flexibility.

As the debate continues, potential borrowers are encouraged to seek expert advice to understand how any regulatory changes might affect their ability to secure a home loan.

March 2025

WA has increased stamp duty exemptions and concessions

The Western Australian Labor government has increased stamp duty exemptions and concessions for first home buyers in its first major housing policy announcement since its re-election in March.

For purchases made after 21 March, the stamp duty exemption threshold for house purchases in Perth and Peel will increase from $450,000 to $500,000 while the concession threshold for first home buyers will increase from $600,000 to $700,000.

For house purchases in regions outside Perth and Peel, the stamp duty exemption threshold will increase from $450,000 to $500,000 and the concession threshold for first home buyers will increase from $600,000 to $750,000.

The stamp duty exemption threshold for statewide vacant land purchases will increase from $300,000 to $350,000 while the stamp duty concession threshold for first home buyers will increase from $400,000 to $450,000.

The state government said the move means that Western Australians buying their first home under $500,000 could save nearly $18,000.

April 2025

Labor’s 5% Deposit Scheme: A Boost for First Home Buyers or More Hurdles Ahead?

The Labor government has announced a major expansion to its housing policy aimed at helping more Australians buy their first home. Under the updated scheme, eligible first-home buyers will be able to purchase a property with just a 5% deposit, and without paying lenders’ mortgage insurance (LMI). Unlike earlier versions, this rollout removes both income caps and place limits, meaning more buyers can now access the program regardless of earnings or availability.

This change could significantly reduce the upfront cost of buying a home. Typically, buyers with less than a 20% deposit are required to pay LMI, which can run into tens of thousands of dollars. With the government acting as guarantor on part of the loan, buyers can avoid this expense and potentially get into the market sooner.

The new policy is being welcomed by many as a step toward improved housing accessibility. Saving a 20% deposit is a major hurdle, particularly for those juggling rising rents and living expenses. A 5% deposit option without LMI gives buyers a head start and may allow them to buy years earlier than they otherwise could.

However, experts caution that the scheme isn’t a guaranteed ticket to homeownership. While it is a step in the right direction, lenders must still continue to meet responsible lending practices through assessing an applicant’s capacity to repay the loan in full based on income, expenses and existing debts.

So, while the deposit and LMI hurdles may be eased, the standard lending criteria still apply. This could limit access for some buyers, particularly those with irregular incomes or higher debt loads.

Still, for many Australians, this update represents a meaningful opportunity to enter the property market without years of saving or extra loan costs. As with any major financial decision, it’s important to get expert advice before applying.