Government help for first home buyers is working. That might be a problem.
Government schemes are getting more first home buyers into the market. But by fuelling demand faster than supply, they may be pushing prices even higher.
In late 2025, the federal government rolled out two of its most ambitious housing support packages in a generation.
The expanded Home Guarantee Scheme, effective from 1 October 2025, allows first home buyers to purchase with as little as a 5% deposit without paying lenders’ mortgage insurance. It also removes income caps from eligibility and lifts the cap on the number of participants able to access the scheme each year.
The new Help to Buy shared-equity program came into effect on 5 December 2025 and enables the government to take up to a 40% stake in new homes and a 30% stake in existing properties. This will cut both deposits and repayments for eligible low-and middle-income earners.
At first glance, this all sounds like great news for hopeful first home buyers desperate to get a foot in the door. In a cost-of-living crisis, every dollar certainly helps.
