Buying your first home is one of life’s biggest milestones, and entering the property market for the first time requires careful planning and preparation.
Even with new government incentives, success comes down to strategy. Here are some steps to position yourself to buy smart:
- Do your research: Understand what incentives and grants apply to your situation, and research the areas you’re considering.
- Get finance ready: Secure pre-approval early so you can act quickly when the right property comes along.
- Complete your due diligence: Arrange building inspections, review strata reports, and ensure you are fully informed about the property before committing.
- Be flexible: If your preferred suburb is out of reach, consider neighbouring areas. Similar homes may be available at lower prices, while still meeting your needs.
- Plan for the long term: Make sure the home suits your lifestyle and financial goals, and that you can comfortably manage repayments even if interest rates change.
KEY CHANGES TO THE SCHEME
- 5% deposit and no lenders mortgage insurance (LMI) – Eligible buyers can now enter the market with just a 5% deposit and avoid paying LMI, reducing upfront costs.
- Removal of income caps – Previously, singles earning over $125,000 and couples over $200,000 were ineligible. These caps have now been removed, broadening access for more Australians. While easier access is welcome, careful budgeting is still essential.
- Unlimited places – The annual cap on the number of buyers has been removed. All eligible first-home buyers can access the scheme immediately, providing certainty and removing the stress of waiting for allocations.
- Higher property price caps – Property price limits have been raised to reflect current market conditions, allowing first-time buyers to access a wider range of homes in highdemand areas up to $1.5m
STATE AND TERRITORY SUPPORT
In addition to the federal scheme, states and territories offer incentives to support firsthome buyers:
- NSW: Stamp duty exemptions and the First Home Owner Grant for new homes Many of these incentives can be combined with the federal scheme, giving buyers even greater support.
HELPING FIRST-TIME BUYERS GET AHEAD
The 2025 updates to the First Home Guarantee Scheme provide a stronger pathway into the property market, but preparation, research, and a clear strategy remain key. Before buying, speak with a financial advisor or mortgage broker to check your eligibility and plan your budget.
For additional guidance, contact your Carolyn Wheatley, Principal of Belle Property Dural for a copy of the first-time homebuyer checklist to take the next step with confidence. Call her on 0407 120 483 today!
