First Home Buyer Activity Surges
First home buyer loans rose 8.2% in November as government schemes help new buyers overcome deposit hurdles. Here's everything you need to know about entering the market in 2025.
+8.2%
Loan Growth
5%
Min Deposit
35,000
Scheme Places
$0
LMI Required
First Home Buyer Market Rebounds
After a challenging period of high interest rates and rising prices, first home buyer activity is showing signs of recovery. The latest ABS data shows first home buyer loans increased 8.2% in November, with 9,847 new loans approved.
Government support schemes, particularly the First Home Guarantee, are playing a crucial role in helping buyers overcome the deposit hurdle.
Government Schemes Available 2024-25
First Home Guarantee (FHBG)
Buy with just 5% deposit, no Lenders Mortgage Insurance required. The government guarantees the remaining 15%.
Eligibility
- • Australian citizen or PR
- • Never owned property
- • Income ≤$125k (single) or ≤$200k (couple)
- • 18+ years old
Price Caps
- • Sydney: $900,000
- • Melbourne: $800,000
- • Brisbane: $700,000
- • Regional: Varies
Regional First Home Buyer Guarantee
Specifically for buyers in regional areas. Same 5% deposit, no LMI, with 10,000 places available annually.
Family Home Guarantee
For single parents with dependents. Buy with just 2% deposit with 5,000 places available.
State-by-State First Home Owner Grants
| State | Grant Amount | Property Type | Value Cap |
|---|---|---|---|
| NSW | $10,000 | New homes | $600,000 |
| VIC | $10,000 | New homes | $750,000 |
| QLD | $30,000 | New homes | $750,000 |
| WA | $10,000 | New homes | $750,000 |
| SA | $15,000 | New homes | $650,000 |
| TAS | $30,000 | New homes | No cap |
Stamp Duty Concessions
Many states offer stamp duty concessions or exemptions for first home buyers:
- NSW: Exempt up to $800,000, reduced up to $1M
- VIC: Exempt up to $600,000, reduced up to $750,000
- QLD: Exempt up to $700,000 for established homes
- WA: Exempt up to $430,000, reduced up to $530,000
Real Example: Sydney First Home Buyer
Sarah, 28, IT Professional
Income: $95,000 | Savings: $50,000
| Property price: | $700,000 |
| Deposit (5% FHBG): | $35,000 |
| Stamp duty (exempt): | $0 |
| LMI (guaranteed): | $0 |
| Other costs: | ~$5,000 |
| Total needed: | ~$40,000 |
Without schemes: Would need $140,000 deposit + $27,000 stamp duty + $15,000 LMI = $182,000
Tips for First Home Buyers
- Get pre-approval: Know your budget before searching
- Check scheme eligibility: Apply for FHBG early - places are limited
- Use First Home Super Saver: Withdraw up to $50,000 tax-effectively
- Consider location carefully: Outer suburbs offer better value
- Factor in all costs: Don't forget conveyancing, inspections, moving
- Build a buffer: Have 3-6 months of repayments saved
- Compare lenders: Don't just go with your bank
First Home Super Saver Scheme
The FHSSS allows you to save for a deposit inside your superannuation, with tax benefits:
FHSSS Benefits
- • Contribute up to $15,000/year (voluntary contributions)
- • Maximum withdrawal: $50,000 + earnings
- • Tax on contributions: 15% (vs your marginal rate)
- • Potential tax saving: $5,000-$15,000
2025 Outlook for First Home Buyers
The outlook for first home buyers in 2025 is cautiously optimistic:
- Interest rates: Expected to fall, improving borrowing capacity
- Prices: Likely to continue rising, but slower pace
- Schemes: Government support continuing
- Supply: New construction slowly increasing
Calculate Your First Home Budget
Use our tools to plan your purchase: