For First Home Buyers: Some Big Wins
- You don’t need a 20% deposit anymore
Good news — the government is expanding its First Home Buyer Guarantee Scheme.
That means from next year, you can buy a home with just a 5% deposit and skip the pricey lenders mortgage insurance (which usually costs around $23,000).
Even better — they’re removing income limits and property price caps. That means more people in more locations can now qualify.
- Buy with just 2% deposit? Yes, really.
The Help to Buy shared equity scheme is growing too. The government can chip in up to 40% of the property price, and you’ll only need a 2% deposit to get started.
They’ll take back their share when you sell — but this could help a lot of buyers get in sooner, especially with rising home prices.
- $10 billion to build more homes
Labor plans to build 100,000 new homes for first-time buyers over the next eight years.
It won’t happen overnight, but it’s a step in the right direction for affordability. - Student debt is going down
Have a HECS/HELP loan? You’re getting a 20% cut to your balance this year.
Plus, you won’t need to start repaying it until you earn a higher income.
Example: If your student loan is $27,600, you’ll save around $5,500. - A small tax cut is on the way
From July 2026, you’ll pay a little less tax — and even more from 2027.
If you earn over $45,000, expect to save $268 in 2026, and $536 in 2027. It’s not huge, but every bit helps when you’re saving for a home. - Battery discounts for energy-efficient homes
Planning to install solar? From July, the government will cover 30% of battery costs (up to $4,000).
Combine that with state rebates and you’re looking at major savings on energy bills.
For Property Investors: Steady, but Stay Alert
- Rate cuts may be around the corner
Most economists expect the Reserve Bank to lower interest rates at its next meeting. That’s great news if you’ve got a mortgage or you’re looking to refinance. - No changes to negative gearing
The government’s playing it safe — no changes to tax settings like negative gearing, GST, or capital gains tax.
So your investment strategy stays stable for now. - High super balances? Watch out
If you’ve got more than $3 million in super, earnings over that will now be taxed at 30% instead of 15%.
And yes — even unrealised gains (on shares or property) will be taxed under this rule.
It won’t hit most people now, but over time, around 500,000 Australians could be affected.
So, What Should You Do Next?
If you’re a first home buyer – this is your sign. Between the new deposit schemes, tax relief, and student debt cuts, 2025 is shaping up to be a great time to make your move.
If you’re an investor – stay sharp. Opportunities are opening up with potential rate cuts, but it’s a good time to review your loan and long-term plan.
Want to know how this affects your loan or buying power?
We’re here to help you figure it all out — no pressure, no jargon.
Book a free chat with the Loan Lounge team today.