Thinking about buying your first home this year? You’re not alone. But before you scroll realestate.com.au for the tenth time today, here’s what’s changed (and what it means for you).
Between rising property prices, new government schemes and evolving lender policies, 2025 has brought a fresh mix of opportunity and challenge for first-home buyers in Australia. Let’s break it down in plain English – no jargon, just facts and strategy.
1. Stamp Duty Is Getting a Shake–Up (Again)
Several states are moving away from upfront stamp duty and offering annual property tax alternatives, making it easier to get into your first home with lower upfront costs. For example, in NSW, first-home buyers may now choose to pay a smaller annual fee instead of a large lump sum. While this can drastically reduce the amount you need to save upfront, it’s not always the best long-term option. It’s important you way up all options and see what suits your financial situation best.
Quick tip: Talk to a broker (like us!) to compare the lifetime cost of both options so you can make an educated decision.
2. First Home Buyer Guarantees Are Still Going Strong
The Federal Government is continuing and expanding the First Home Guarantee scheme in 2025, which means eligible buyers can purchase with as little as 5% deposit and skip Lender’s Mortgage Insurance (LMI) all together. There are still terms and conditions that it is important to consider, but it’s a game-changer if you’re priced out of the traditional 20% deposit model. Never skip out on reading the T&Cs. Talk to a broker to help you understand all the nuances of your loan.
3. Grants and Incentives Vary More Than Ever
Depending on where you live, you might be eligible for:
- A first home owner grant (up to $10,000–$30,000 depending on your state)
- Concessions on stamp duty (reducing up front costs)
- Additional rebates for building new homes or buying off-the-plan
But beware, some of these offers only apply to new builds, while others favour established homes. And each comes with its own fine print, terms and conditions and a list of pros and cons. A broker can help you understand your options and compare them to make sure you can make the right decision for your personal financial situation.
4. Lender Policies Are Getting Stricter… and Smarter
Banks are tightening the screws on borrowing power due to inflation and rising living costs. That means:
- Your lifestyle spending gets more scrutiny
- ‘Buy now, pay later’ services can reduce your borrowing power
- Casual and contract work is under more review
But the good news? Some lenders are also introducing smarter assessments that favour shared equity, parental guarantees, and dual-income applications.
5. Interest Rates Might’ve Peaked – But Flexibility Matters
While the RBA has hinted that rate hikes are slowing, banks are now pricing in more risk. That makes rate flexibility and loan structure more important than ever. Don’t just chase the lowest number – make sure your loan can grow with you as life changes.
So… Is 2025 a Good Time to Buy?
If you’ve got savings, a stable income, and you’re ready to stay put for 3–5 years – yes, 2025 could be your year. But the key is being strategic.
“Buying your first home isn’t about beating the market. It’s about knowing your numbers, using every tool available, and making a confident move that sets up your future.”
Let’s Map Out Your First Home Strategy
Book a free home loan review and we will:
- Run your borrowing power
- Check your eligibility for grants and schemes
- Compare lenders who favour first-home buyers
- Build a strategy tailored to your goals
