Changes to First Home Buyer Schemes in Australia after Labor’s 2025 re-election
Labor’s 2025 re-election has brought a wave of housing policy changes aimed at making homeownership more accessible to Australians—especially first-time buyers. From the Help to Buy scheme 2025 to a 5% deposit home loan, the new initiatives could significantly ease the path to homeownership for buyers across the country. For Perth locals, combining national policies with WA-specific schemes like the First Home Owner Grant WA and stamp duty exemptions WA presents an unmatched opportunity.
At Motivate Property Group, our team is ready to guide you through these updates to help you step confidently onto the property ladder.
National First Home Buyer Schemes After Labor’s 2025 Election
Following the May 2025 election, the Albanese government rolled out three key national schemes designed to tackle affordability issues while expanding access.
1. Universal 5% Deposit Guarantee
The revamped First Home Guarantee removes income caps and regional restrictions, enabling eligible buyers to purchase a home with just a 5% deposit home loan. Kicking in January 2026, this applies to both new and existing homes, with price caps relevant to each region (e.g., $850,000 for Perth).
With Perth’s median home price at around $775,000, a 5% deposit is just $38,750—far less daunting than the $155,000 required for a 20% deposit. Better yet, buyers avoid Lenders Mortgage Insurance (LMI), which typically adds $5,000–$20,000 to costs.
2. $10 Billion for 100,000 New Homes
Labor’s housing policy 2025 also includes a $10 billion commitment to build 100,000 new homes for first home buyers, set to begin rolling out in 2026–27. These homes will be sold at-cost—up to 20% below market value—and delivered in partnership with state governments.
For the Perth property market, this means more supply in high-demand areas. While increased short-term demand may push prices up, long-term supply is expected to ease housing affordability in Perth if they can deliver on this promise.
3. Help to Buy Scheme 2025 – Expanded Access
The updated Help to Buy scheme 2025 supports 40,000 first home buyers with just a 2% deposit. The government contributes up to 40% of the home’s equity (new builds) or 30% for existing homes. Income caps have increased to $100,000 for singles and $160,000 for couples, with Perth’s property cap at $850,000.
Applications open late 2025, but availability is capped at 10,000 places per year. As a shared equity home loan, this scheme does require repaying the government’s share upon resale or refinance, so understanding the implications is essential.
WA Schemes Supporting First-Time Buyers in Perth
First Home Owner Grant WA (FHOG)
The First Home Owner Grant WA remains a powerful tool for eligible buyers. It offers $10,000 towards newly built homes valued under $750,000 in metro Perth, or up to $1 million in northern WA. With no income test, it’s a widely accessible incentive.
Stamp Duty Exemptions WA
Under WA’s current concessions:
● No stamp duty applies to homes under $430,000
● Discounted duty rates apply for homes valued up to $530,000
This can save you thousands upfront—especially when paired with national schemes.
Together, these state-level incentives provide Perth residents with a significant financial advantage when entering the market.
What These Changes Mean for First Home Buyers
Lower Deposit Requirements
Between the First Home Guarantee and Help to Buy scheme 2025, buyers now have the option of a 5% or even 2% deposit. For an $820,000 home, that’s a difference between saving $41,000 or as little as $16,400.
Significant Cost Savings
The elimination of LMI, combined with stamp duty exemptions WA, can save buyers tens of thousands. These changes fast-track entry into the market for those who previously found upfront costs insurmountable.
Increased Supply – Eventually
Although the $10 billion housing fund will take time to impact supply, its long-term effect should support sustainable housing affordability in Perth, particularly in emerging growth corridors.
Understand the Trade-offs
While shared equity home loans lower the entry barrier, they require giving up a percentage of future sale profits and affect refinancing flexibility. Buyers should weigh these implications carefully with help from expert advisors like Motivate Property Group.
What Should First Home Buyers Do Next?
1. Confirm Eligibility
Visit Housing Australia and WA Finance websites to check the latest income and property caps for each scheme.
2. Speak to a Local Expert
Our team at Motivate Property Group offers personalised guidance, helping you understand the pros and cons of each scheme in the context of your goals.
3. Read the Fine Print
Before entering into a shared equity home loan, make sure you understand what happens at sale or refinance.
4. Apply Early
Spots for Help to Buy scheme 2025 are limited. Be ready to apply when applications open later this year.
5. Stay Updated
Policy timelines can shift. Keep up to date with our regular blogs and podcasts for any updates on the rollout of the Labor housing policy 2025.
What’s Next? Outlook for Perth’s Housing Market
Labor’s re-election brought with it a bold housing agenda, and while some policies won’t take effect until 2026, the direction is clear: broader access to homeownership, particularly in fast-growing markets like Perth.
That said, factors such as construction labour shortages and supply chain delays may challenge the speed of home delivery. In the short term, increased buyer activity could drive prices higher before they eventually stabilise.
For those keeping an eye on the Perth property market, now is a critical time to act—before demand outpaces the benefits of these new reforms.
Ready to take advantage of the first home buyers First Home Guarantee (FHBG) scheme?
Let our team at Motivate Property Group guide you through your next steps. From understanding stamp duty exemptions WA to navigating shared equity home loans, contact us so we can help you buy your first home—on your terms.