Big Changes for First Home Buyers and What This Means for You

From July 1, 2025, several major government schemes have come into effect, aimed at helping more Australians break into the property market. As a mortgage broker working closely with buyers in both Queensland and New South Wales, I’ve had many clients ask me how these changes affect them.

If you're a first home buyer, there are now multiple ways to get into the market with as little as a 2 to 5 percent deposit — and without having to pay Lenders Mortgage Insurance (LMI). But each scheme comes with different rules, limits, and long-term implications. Let me break it down for you.

AVAILABLE SCHEMES FOR QLD AND NSW FIRST HOME BUYERS

1. Help to Buy (Federal Shared Equity Scheme)

• Government contributes up to 40 percent for new homes or 30 percent for existing homes

• You only need a 2 percent deposit

• Income must be under $100,000 for individuals or $160,000 for couples

• Property price caps: $950,000 in NSW, $700,000 in QLD

How it works:The government owns a share of your home. When you sell or refinance, you repay that same percentage based on the property's current value — not the original amount.

Example:You buy for $700,000 and the government contributes 30 percent ($210,000). If the home is worth $900,000 when you sell, you owe them 30 percent of $900,000 — that’s $270,000.

2. Boost to Buy (QLD Shared Equity Scheme)

• QLD Government contributes up to 30 percent for new homes or 25 percent for existing homes

• Still only a 2 percent deposit needed

• Higher income caps: $150,000 for singles and $225,000 for couples

• Property price cap: up to $1,000,000

This is only available to Queensland buyers but gives more flexibility on income and property value. Very handy for clients with good earnings but minimal savings.

3. First Home Guarantee (Federal, No Equity Sharing)

• Buy with just a 5 percent deposit

• No LMI

• You own 100 percent of the home

• Income cap: $125,000 for singles or $200,000 for couples

• Price caps: $900,000 in NSW, $700,000 in QLD

This scheme is for buyers who want to avoid government ownership. You borrow 95 percent of the purchase price, but because it’s guaranteed, there’s no LMI added.

REAL-WORLD EXAMPLES

Alice – Single, Brisbane Buyer

• Income: $90,000

• Property: $680,000 (existing home)

• Deposit: $20,000

Option A – Boost to Buy: Alice qualifies and can access a 25 percent QLD Government contribution. This lowers her loan and helps her buy now.

Option B – Help to Buy: Also eligible. She could get 30 percent from the federal scheme. Very similar result, but capped at $700,000.

Option C – First Home Guarantee: She qualifies but needs a $34,000 deposit to proceed. More than she has saved.

Best fit: Boost to Buy — she gets in sooner and stays within the rules comfortably.

Ryan – Single, Sydney Buyer

• Income: $110,000

• Property: $920,000 (new townhouse)

• Deposit: $30,000

Option A – Help to Buy: Not eligible. He earns too much.

Option B – First Home Guarantee: He qualifies and can buy with a 5 percent deposit. No equity sharing.

Option C – Boost to Buy: Not applicable — this is a QLD-only scheme.

Best fit: First Home Guarantee — he earns too much for shared equity, but this still lets him in without LMI.

WHAT IF THE PROPERTY VALUE CHANGES?

This is a big one I explain to clients all the time. With shared equity, you are not borrowing a set amount — you are giving up a portion of your home's value.

Example:Emma buys for $800,000 in QLD. Government puts in 30 percent ($240,000).Five years later, the home is worth $1,000,000. Emma must repay 30 percent of $1 million — $300,000.

This can be a great tool to get in now, but understand it comes at the cost of sharing future growth.

KEY TAKEAWAYS

• QLD buyers have more flexibility thanks to Boost to Buy

• NSW buyers have better access through Help to Buy and First Home Guarantee

• Not all buyers will qualify for all schemes — income, location and property price all matter

• Shared equity means smaller loans and faster entry, but shared capital gains

• First Home Guarantee is great if you want full ownership from day one

Final thoughts from me

These schemes are a big opportunity, but the right fit depends on your situation. I work one-on-one with buyers across QLD and NSW to help them figure out what they qualify for and how to make it work.

If you're looking to buy and want help navigating these new options, get in touch. I'll help you sort through the noise and move forward with confidence.