Changes for New Home Buyers in 2025

Buying your first home is one of life’s big moments, and in the next 12 months, the process is set to become very different. With housing affordability becoming out of reach for so many, new reforms aim to try level the playing field. From the expanded Home Guarantee Scheme to stamp duty savings and new government housing initiatives, there are fresh opportunities ahead for Australians ready to step into the property market.

We’ve outlined the key dates and changes you need to know to plan your home-buying journey.

Key Dates

From October 1 2025

1. Expanded 5% Deposit Scheme

From 1 October 2025, the First Home Guarantee (Home Guarantee Scheme) will be expanded nationwide, earlier than originally planned.

What’s changing?

Deposit cut to 5%: Eligible buyers only need a 5% deposit. The government guarantees the remaining 15%, eliminating the need for costly Lenders Mortgage Insurance (LMI).
Unlimited Scheme Access and No Income Restrictions – The previous income caps and placement restrictions are gone. Any eligible first home buyer can apply.
Higher property price caps: Increases will allow purchases up to approx.
- Capital Cities and Regional Centres: $1.5M
- Regional NSW: $800,000 (depending on the area)
Wider eligibility: The scheme is no longer just for couples and singles; a broader range of buyers including friends, siblings or other family members, will now qualify.

Why it matters

Saving for a 20% deposit can take many years in some cities. With this change, first-time buyers will be able to purchase a home years earlier, while avoiding tens of thousands of dollars in LMI.

2. Simplified Regional Access

Until now, first home buyers in regional NSW often faced tighter eligibility criteria compared to metro buyers. That’s changing.

What’s different?

Single cap system: The scheme is moving away from complex, region-by-region caps. Instead, there’s a clear distinction between capital city/major regional centres and other regional areas.
Higher price thresholds:
- Sydney + major regional centres (like Newcastle, Lake Macquarie, Illawarra): $1.5 million cap
- Other regional NSW: $800,000 cap
Broader eligibility: The old limits on places and income have been scrapped – making access simpler and more consistent for regional buyers.

Why this matters for regional NSW

Less confusion: Buyers in regional towns like Leeton, Griffth, Narrandera, Temora, Wagga Wagga and the Riverina no longer need to navigate complicated criteria.
Easier entry: With a 5% deposit and no Lenders Mortgage Insurance (LMI), regional buyers can purchase homes valued up to $800,000.
More opportunity: Regional housing markets, which have seen strong growth, are now better supported by the scheme.

Also scheduled or implemented in 2025

3. Federal Help to Buy Scheme (expected late 2025)

The 2025–26 Federal Budget has boosted housing support, with initiatives that benefit NSW buyers:

Help to Buy – With as little as a 2% deposit, the government may contribute:
- Up to 40% of the price for a new build
- Up to 30% for an established home
Housing supply investment – $33 billion pledged to build 1.2 million new homes by 2030, including faster modular builds to ease supply pressure.
Foreign buyer restrictions – From April 2025 to March 31, 2027, a ban applies to foreign purchases of established dwellings, reducing competition for local buyers.

Implemented prior to 2025

4. NSW Stamp Duty Reforms

NSW has already taken big steps to make housing more affordable.

First Home Buyer Assistance Scheme – From 1 July 2023, transfer duty exemptions were expanded:
- No stamp duty for first homes up to $800,000
- Concessional rates for homes valued between $800,000 and $1 million
These reforms continue through 2025, delivering upfront savings of up to $30,000 for eligible buyers.

Market Outlook – 2026 and Beyond

While these reforms open more doors, analysts warn of a likely surge in demand. Home prices are forecast to grow 8–10% in 2026, particularly in Sydney and other high-demand regions of NSW.

This makes acting early a smart move – securing finance and being purchase-ready before competition heats up.

Key Dates for NSW Buyers

Date	Change	Benefit for Buyers
April 2025	Ban on foreign buyers of established dwellings to March 31, 2027	Less competition for properties
Now	NSW stamp duty exemptions on homes up to $800k	Upfront savings of up to $30,000
1 Oct 2025	Expanded 5% Deposit Scheme	Faster entry to the property market
Late-2025	Help to Buy (federal scheme)	Enter market with as little as 2% deposit

How We Can Help

For first home buyers in NSW, the next 12 months bring unprecedented opportunity. Lower deposits, government support, and stamp duty savings can help you get into your first home sooner than expected.

At Farrell Goode, our experienced real estate solicitors and conveyancers stay up to date with legislative changes to provide you with the best possible advice. We specialise in guiding clients through property purchases. From understanding contracts to navigating government schemes, our team is here to protect your interests and make the process as smooth as possible.

📞 Contact us today to discuss how these upcoming changes could work in your favour.