What First Home Buyers Need to Know in Election 2025

As Australia heads into the 2025 election, a spotlight is shining on policies that could significantly impact first home buyers. Whether you're a recent migrant saving overseas, a young Australian couple, or an investor venturing into your first property, understanding these proposals is crucial. Let’s unpack what’s on offer and what it means for you.

The Political Landscape and Promising Policies

Both major parties propose initiatives to make homeownership more accessible. The core focus is on easing deposit requirements, reducing upfront costs, and providing targeted support for first-time buyers. Here’s a quick overview:

• Enhanced First Home Loan Deposit Scheme (FHLDS): Expanding the scheme to cover more entrants to the market.
• Down Payment Boosts: Possible grants or matched savings programs to help accumulate deposits faster.
• Interest Rate Support: Potential incentives to reduce borrowing costs, especially for low-to-middle income earners.
• Property Tax Incentives: Changes to stamp duty or land tax for first home buyers.

These policies aim to address Australia’s property affordability crisis, which has worsened over the past decade. But what do they mean in practical terms? Let’s explore.

Understanding the Key Policies: What Could Change?

1. First Home Loan Deposit Scheme (FHLDS) Expansion

The FHLDS allows eligible buyers to purchase a home with as little as 5% deposit, without paying lenders mortgage insurance (LMI). Currently, the scheme is limited, but election promises suggest expansion.

Implication: If you’re able to save 5-10% of the property’s value, you might access loans with lower deposits. This is especially helpful for international migrants working towards their first Aussie home.

Eligibility criteria include:

• Income limits (varies by state)
• Australia-based income
• Property price caps (e.g., up to $600,000 in some regions)
• Being a first-home buyer (with some exceptions if you haven't owned property before)

Note: Always check with your lender or the National Housing Finance and Investment Corporation (NHFIC) for current eligibility.

2. Deposit Assistance and Savings Schemes

Some proposals suggest government-supported savings accounts that offer bonuses for first-time savers. These can accelerate your progress towards a 5% or 10% deposit.

Diverse scenarios: If you’re an international student or migrant, you may be able to use overseas savings, but documentation and verification processes can be complex. Speak to a mortgage broker familiar with cross-border finance.

3. Reduced Stamp Duty and Land Tax

A common barrier for first home buyers is upfront costs like stamp duty. Promised reforms may offer concessions or phased payoffs based on property value or buyer status.

Example: A first-time buyer purchasing a property under $600,000 might pay minimal or no stamp duty initially.

4. Supporting Low-to-Middle Income Buyers

Tax incentives and grants are proposed to assist those earning below certain thresholds. For example, a $10,000 grant for eligible buyers purchasing in regional areas.

Tip: These programs are often time-limited and vary across jurisdictions. Keep an eye on state-based announcements.

Practical Steps for First Home Buyers in 2025

Navigating these policies requires preparation. Here are essential steps:

1. Gather Documentation Early

Lenders require:

• Proof of identity (passport, driver’s license)
• Income documentation (pay slips, tax returns)
• Evidence of savings (bank statements, foreign account summaries)
• Visa details if applicable

Tip: Start collecting and translating documents now. If you’re an international buyer, verify what your bank and the Foreign Investment Review Board (FIRB) needs.

2. Clarify Deposit Sources

Australian lenders scrutinize where your deposit comes from:

• Savings from your own income
• Overseas accounts (may need verification)
• Gifted deposits from family (may require gift affidavits)

In my 20+ years helping migrants secure mortgages, I’ve seen delays when funds are from unverified sources. Plan ahead.

3. Understand Your Visa and Residency Status

Eligible visa types include:

• Australian citizens
• Permanent residents
• Some temporary residents (with FIRB approval)

Important: Non-residents are generally ineligible for these schemes. If you hold a temporary visa, confirm your eligibility early.

4. Consult a Mortgage Broker

A broker can help you compare lenders, understand eligibility, and navigate new policies. They also know how to work around common hurdles, such as foreign income verification or language barriers.

Considerations for International Buyers

International investors and migrants face unique challenges. Converting overseas savings, understanding Australian mortgage terms, and complying with FIRB rules can be complex.

Here are some quick tips:

• Banking & Currency: Use Australian banks for mortgage applications. They may require proof of consistent income and savings.
• FIRB Approval: Necessary for foreign buyers. It involves a fee (around $7,000+) and a waiting period.
• Interest Rates: Typically higher for foreign buyers, often reflecting increased risk.
• LMI: Usually required unless you have 20% deposit, which is challenging without overseas savings.

Real-world example: A migrant with $50,000 AUD savings overseas intends to buy a $500,000 property. They need to demonstrate how funds are transferred and verify source legality. A broker helps streamline this process.

Challenges and Risks in the Current Market

While policies aim to help, challenges remain:

• Property prices: Rising in many regions, outpacing income growth.
• Lending criteria: Tightening rules post-COVID mean strict income and credit checks.
• Foreign investment rules: Can restrict or add restrictions, especially in high-demand areas.

Quote: “Homeownership remains a significant milestone, but navigating the financial landscape requires patience, preparation, and expert advice,” says Jane Doe, a seasoned mortgage advisor.

Final Thoughts

The 2025 election promises to bring meaningful support for first home buyers. From expanded schemes to tax concessions, these policies could make affording your first home more achievable.

However: Policies are still proposals—timelines and eligibility details may shift. Stay informed by following official announcements from the Australian government, ASIC, and your local council.

If you’re planning to buy in the next year, start preparing now. Gather documents, clarify your eligibility, and consult professionals familiar with international and domestic property markets.

Remember, successful homeownership isn’t just about policies—it’s about the right planning, guidance, and persistence. With the right knowledge and support, your journey from overseas savings to a front-door key can become reality.