Australia’s federal government has brought forward their housing reform package, a key election promise, now set to take effect from 1 October 2025. The changes include expanding low-deposit pathways, introducing supply measures to boost housing developments, and increasing the use of technology to accelerate approvals.
What changes are coming to the First Home Guarantee?
From 1 October 2025, the First Home Guarantee Scheme will be open to all first-time buyers, removing income restrictions. Property price thresholds will rise to $1.5 million in Sydney, allowing first home buyers to purchase with as little as a 5% deposit and avoid costly lender’s mortgage insurance (LMI). The government will also guarantee up to 15% of the loan, generating estimated savings of $1.5 billion in LMI fees over the next year. This means first home buyers on the Central Coast looking at an $800,000 property could enter the market with less than $44,000 upfront, making homeownership more accessible than ever before. And the removal of income means testing, one of the biggest hurdles for younger Australians trying to enter the housing market, has been cleared, giving more aspiring homeowners the opportunity to take advantage of the scheme.
How will the government boost housing supply?
The government is set to increase approvals for medium-density housing developments and support modular and prefabricated builds, boosting housing supply. An increased use of technologies, such as AI, will assist in speeding up housing approval assessments, which is currently affecting 26 000 applications. Updates to the National Construction Code will be temporarily frozen which aims to help Australia achieve its ambitious goal of building 1.2 million new homes over the next five years.
Are there any risks to first home buyers?
While the updated reforms create a promising outlook for younger Australians trying to enter the housing market, experts warn of potential challenges. Careful consideration should be given to risks such as high loan-to-value lending, exposing borrowers if equity is low and interest rates rise. Additionally, if buyer demand grows faster than housing supply, property prices may continue to climb, particularly in high-demand areas like the Central Coast. At Universal Mortgage Experts, we assist buyers by assessing their long-term affordability and managing risks so they can navigate the new reforms with confidence.
What do the reforms mean for the Central Coast?
For first-time buyers on the Central Coast, these reforms will create opportunities to enter the market sooner than expected. With lower deposit requirements and greater accessibility through increased housing supply, buyers will have more choices available to them. However, they should approach the market cautiously, ensuring they can manage repayments sustainably while securing long-term financial stability.
Navigate the reforms with confidence
At Universal Mortgage Experts, we stay informed and up to date with the latest market trends and government support programs and packages. We find suitable lenders and structure loans for long-term financial security, and offer annual reviews to ensure your mortgage aligns with future goals. Our mission is to empower you to take advantage of new opportunities while effectively managing risks.
Make the move with Universal Mortgage Experts
Ready to take the next steps towards buying your first home, or curious about how the recent reforms can create opportunities for you? Connect with Universal Mortgage Experts, and we’ll help you to navigate your home buying journey with confidence and clarity.
9 September
