🏠 First Home Guarantee: 5% Deposit, No LMI

Starting in 2026, the expanded First Home Guarantee will allow eligible first-home buyers to purchase a home with just a 5% deposit, without the need for Lenders Mortgage Insurance (LMI). The government will guarantee up to 15% of the loan, effectively eliminating LMI costs. Income and property price caps will be removed, broadening access to this scheme.

🏘️ 100,000 Homes Reserved for First-Home Buyers

Labor has committed $10 billion to construct 100,000 homes exclusively for first-home buyers. Construction is set to commence in 2026-27, with occupancy from the following financial year. This initiative aims to reduce competition from investors and make homeownership more attainable.

🤝 Help to Buy Scheme: Shared Equity Assistance

The Help to Buy scheme enables eligible buyers to purchase a property with as little as a 2% deposit. The government will contribute up to 40% of the purchase price for new homes and up to 30% for existing homes. Income caps have been increased to $100,000 for individuals and $160,000 for couples and single parents. The scheme is expected to open for applications in 2025, with 40,000 spots available over four years.

🚫 Ban on Foreign Investors

Effective from April 1, 2025, a two-year ban prohibits foreign residents from purchasing existing properties. This measure is designed to prioritize housing availability for Australian residents and address affordability concerns.

🏗️ Investment in Prefabricated Housing

Labor is investing $54 million in advanced manufacturing for prefabricated and modular homes, along with $120 million from the National Productivity Fund to streamline construction processes. These efforts aim to expedite the delivery of 55,000 social and affordable homes nationwide.

💡 Additional Cost-of-Living Measures

To further support Australians, the government is implementing tax cuts, energy bill relief, and initiatives to reduce the cost of medicines and student debt.

📞 Ready to Explore Your Options?

At Mortgage Matrix, we're here to help you understand and leverage these new government initiatives. Whether you're a first-time buyer or looking to invest, our team is ready to guide you through the process.

Contact us today to discuss how these changes can benefit your homeownership journey.