How Labor’s Policies Could Shape Your Path to Homeownership

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Labor’s landslide victory has set the stage for significant housing changes — especially for first-time buyers. Here’s a clear snapshot of what their promises mean for you and what to watch for as new measures move through Parliament.

1. Smaller Deposits, No LMI: Expanded First Home Guarantee

Labor has committed to expanding the First Home Guarantee so that, from 2026, more first-home buyers can purchase with just a 5% deposit — without paying costly Lenders Mortgage Insurance (LMI).

Under this scheme, the government guarantees up to 15% of the loan, saving buyers an average of $23,000 in LMI costs. Importantly, Labor plans to lift income and property caps, potentially opening the door for more buyers.

For context:

  • In Sydney, this could mean buying a $1.5 million home with a $75,000 deposit. 
  • In Queensland, an $850,000 home could require just $42,500 upfront. 

More than 150,000 buyers have already used this scheme — expect even more to benefit under the expansion.

2. 100,000 New Homes Just for First-Home Buyers

The government plans to invest $10 billion to build 100,000 new homes for first-home buyers. Construction is set to begin in 2026-27, with move-ins from the following year. This aims to ease demand and help more Australians enter the property market sooner.

3. Help to Buy Scheme: Buy with as Little as 2% Deposit

Labor also plans to strengthen its shared equity Help to Buy scheme by increasing income and property price caps.

This scheme allows eligible buyers to purchase a property with a deposit as low as 2%, while the government contributes 30–40% equity towards the purchase — no LMI required.

Example: For a $600,000 home, you may only need a $12,000 deposit.

Updated income caps:

  • Singles: from $90,000 to $100,000 
  • Couples or single parents: from $120,000 to $160,000 

Applications are expected to open in 2025, with 40,000 places available over four years. Some states have already passed the required laws, so reach out and we’ll explain what’s available for you.

4. New Rules for Foreign Buyers: Two-Year Ban on Existing Properties

From 1 April 2025, foreign investors will be barred from buying existing Australian properties for two years. This aims to make more homes available for local buyers and ease affordability pressures.

5. Fast-Tracked Builds with Prefabricated Homes

To help deliver more homes, Labor will invest $54 million in modern prefabricated and modular home construction and provide $120 million to encourage states to cut red tape.

Overall, Labor plans to deliver 55,000 social and affordable homes, with 28,000 already in planning or under construction.

6. Other Cost-of-Living Relief

Alongside housing measures, Labor’s broader cost-of-living relief includes:

  • Tax cuts 
  • Lower energy bills 
  • Cheaper medicines 
  • Reduced student debt 

These changes aim to free up more of your income for saving and investing in your future home.

Ready to Make Your Move?

If you want to understand exactly how these policies can help you secure your next home sooner — let’s chat. We’ll break down what applies to you, do the sums, and guide you every step of the way.

📞 Contact us today and take the first step towards your next address.