Real Estate
4 September, 2025
First home buyer changes
IN an aim to help first home buyers get on the property ladder, the government has announced some major changes to the First Home Guarantee Scheme that will start on October 1, 2025.
The scheme will allow all first home buyers to buy a property with a smaller 5 per cent deposit, compared to the usual 20 per cent. The government will act as guarantor and will contribute the remaining 15 per cent of a deposit, allowing buyers to avoid taking out costly lenders’ mortgage insurance.
The scheme is now unlimited and will be expanded to all first home buyers and there will no longer be any income limits.
Price caps for eligible homes in the scheme in almost all states will also be raised.
Here in Cairns the cut-off is now $700,000 purchase price (increased from $550,000) and when it comes to new properties and house and land packages there is no cap on the purchase price, but there are some major changes to stamp duty exemptions.
While this is very exciting news for first home buyers and families trying to break into the market, there is a view that combined with the falling interest rates this new scheme will fuel price growth and a spike in property prices once again.
– Sean Thorpe is sales director, auctioneer and founder of the Paradise Property Group
