Major Federal Policy changes for first-home buyers — here’s what you need to know

New housing policies = big opportunity. First-home buyer schemes are opening doors, especially for self-employed individuals. Take advantage before the market moves.

The 2025 federal election delivered significant policy changes aimed at helping first-home buyers break into the market and the opportunities are especially strong for self-employed professionals, modest-income earners, and younger families.
With affordability still a major challenge across Australia, these new initiatives provide genuine relief and practical pathways to ownership but they won’t last forever. For many, it’s a case of “if not now, when?”

What’s changing and why it matters

The government has introduced or expanded a number of buyer-friendly schemes that significantly reduce deposit requirements, eliminate lenders mortgage insurance (LMI) and boost access to new housing stock. Here’s a breakdown of the most relevant reforms:

Help to buy scheme (Shared equity)

• Enter the market with as little as a 2% deposit.
• The government contributes up to 40% of the purchase price for new builds (30% for existing homes) in exchange for an equity share.
• No LMI required, which can save buyers tens of thousands.
• Capped at 40,000 places, rolling out from late 2025.

Tip: Like any capped scheme, timing is critical, these spots will go fast.

5% deposit guarantee (First home guarantee expansion)

• No income caps or property price limits.
• Borrowers can access up to 95% LVR with no LMI.
• Open to a wider range of buyers, including self-employed and contractors who may have previously missed out.

Tip: Ideal for young professionals who are asset-light but income-strong.

100,000 New homes reserved for first home buyers

• Part of a $10 billion investment, this scheme ensures these homes are off-limits to investors.
• Designed to increase supply and provide genuine access for entry-level buyers.

National housing accord – 1.2M homes by 2029

• Broader supply initiative designed to ease affordability pressures across both capital cities and regional hubs.

Two-year ban on foreign purchases of existing homes

• Aims to cool demand and free up more stock for local buyers.

Why It’s a Big Deal for Younger Buyers

The combination of government support + softening interest rates (as forecast by all four major banks) is creating the most accessible conditions we’ve seen in years.
First home buyers who act early can take advantage of:

• Minimal deposit requirements
• Lower monthly repayments
• Increased borrowing power
• Better odds of approval, even for self-employed or contract workers

These changes also mean that waiting could cost more, either by missing out on capped schemes or facing increased competition once the market fully absorbs these reforms.

How Vincents Lending Solutions Can Help

Navigating eligibility, structuring finance across multiple schemes, and preparing for pre-approval can be overwhelming, especially for those buying their first home.
That’s where we come in.

Our Lending Solutions team understands the details, the policy mechanics, and the lender requirements. We’ll help

• Understand which schemes you qualify for
• Structure the loan to maximise savings and reduce risk
• Get pre-approved fast so you’re ready to make a move

We’re right here and are available to help! Contact us today!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.