First Home Buyers – Get Ready to Act…

From 1 October, the updated Home Guarantee Scheme will include:

• Unlimited scheme places for eligible first home buyers.
• Higher property price caps, including a new $1.5 million cap for Sydney, aligning closely with the city’s median house price.
• Expanded eligibility, enabling more Australians to access the scheme with just a 5% deposit and no Lenders Mortgage Insurance (LMI).

These adjustments directly impact properties in the $700,000 to $1.6 million price range — a bracket that already sees high demand from first home buyers in NSW. But this increased access is already influencing the market — and not necessarily in ways that benefit those who wait.

Property analysts and brokers alike are noting a sharp uptick in buyer interest in suburbs and property types that fall neatly under the new price thresholds.

There is a clear need to get organised, especially as interest rates are now beginning to trend downwards. This makes borrowing cheaper and adds further fuel to buyer demand — particularly in the lead-up to the spring auction season.

However, one key handbrake remains: the stamp duty exemption threshold has not increased and still applies only to properties priced up to $800,000. This means that while more properties may now be eligible under the Federal Scheme, many buyers will still face full or partial stamp duty on homes above that threshold — an important consideration for budgeting.

If you’re considering entering the market, here’s why you shouldn’t wait:

1. Spring is always competitive, and this year’s scheme changes will only amplify that.
2. Interest rates are falling, making borrowing more affordable — but also increasing buyer activity.
3. Property prices may rise in the short term as demand spikes ahead of and after the October changes.
4. The stamp duty waiver cap remains unchanged at $800,000, so it’s crucial to factor this into your purchasing strategy.

• Start a conversation with your Broker: Understand your borrowing power and the type of loan structure that may suit you best. So once the 1 October changes to the scheme kick-in, you are ready to action pre-approval and hit the market sooner rather than later.
• Check your eligibility under both the current and upcoming Home Guarantee Scheme rules.
• Be strategic about your budget: Consider how stamp duty will impact your overall costs if buying above $800,000.
• Start your property search now so you understand current prices and suburbs that may fit within your budget.