First Home Buyer Incentives Set to Ignite the Local Market
First Home Buyer Incentives Set to Ignite the Local Market
If you’re a first home buyer in New South Wales, October 2025 is shaping up to be a pivotal moment. With the government’s expanded incentives about to kick in, local mortgage brokers are reporting a surge in activity—many are busier than ever as first home buyers scramble to secure pre-approval for finance. The goal? To be ready to capitalise on what’s expected to be a significant rush into the market as the new grants become available from 1 October.
What’s Changing for First Home Buyers?
From 1 October 2025, the Australian Government is rolling out major enhancements to the Home Guarantee Scheme. There will be no cap on the number of guarantees, and income limits are being removed, making the scheme accessible to a broader range of buyers. First home buyers will be able to purchase with as little as a 5% deposit—without the burden of Lenders Mortgage Insurance (LMI). Property price caps are also increasing, with the Illawarra and other regional centres in NSW seeing the threshold jump to $1.5 million.
These federal changes can be combined with existing NSW state incentives, such as the First Home Buyers Assistance Scheme (stamp duty exemptions for homes under $1 million) and the $10,000 First Home Owner Grant for new homes up to $600,000 (or $750,000 for house-and-land packages).
Why the Rush?
Local brokers are telling me that first home buyers are moving quickly to get their finance sorted. Many want to be ready to act as soon as the new incentives take effect, hoping to beat the anticipated competition. This sense of urgency is being fuelled by a rare combination of factors:
A recent interest rate cut has improved borrowing power and affordability.
A lack of the traditional springtime influx of property listings—2025 has seen a steady decline in new properties coming to market each month since February.
The upcoming government incentives are expected to bring a wave of new buyers into the market, potentially increasing competition for the limited supply of homes.
What Does This Mean for Buyers and Sellers?
For buyers who won’t be eligible for the new grants, it may be wise to act now. With supply tightening and demand set to spike, waiting could mean facing higher prices and more competition. For sellers, the coming weeks could see renewed energy in the market, with more buyers actively searching and ready to make strong offers.
Final Thoughts
The combination of lower interest rates, declining property supply, and the imminent arrival of expanded first home buyer incentives is likely to give the residential market a solid kick in the coming weeks. If you’re considering buying or selling, now is the time to get your plans in order.
As always, I’m here to help you navigate these changes and make the most of the opportunities ahead.
Register for property alerts for VIP access to our exclusive properties
Request Free Property Appraisal on your own property to get ready to capitalise on the market ahead
Share
Daniel's Insights
For many property owners, one of the first questions that comes up when choosing an agent is: “Are they based in my suburb?
As an agent this is one of the most common phrases I hear from clients when they want to make an offer or start negotiations.
Recently I had the pleasure of representing a client and helping them to achieve the highest sale price on record for any property in the...
Selling your home in the Illawarra—whether in Wollongong, Thirroul, or East Corrimal—is a major financial decision.
Selling a property can feel overwhelming, but understanding the process makes it far more manageable.
Moving house? Whether you're buying, renting, or simply relocating, the process of setting up your new home can be overwhelming.
In the ever-evolving landscape of real estate, countless factors influence buyer sentiment—interest rates, media narratives, global...
If you’ve ever been in the middle of buying a property only to find out someone else swooped in with a better offer, you’ve experienced...
When it comes to selling your property, the two most common methods are Private Treaty (often referred to as a “normal for sale”) and...
When buying property in New South Wales, one of the most important protections available to purchasers is the cooling-off period.
When you're preparing to sell your property, it's natural to have questions.
When it comes to selling your property, first impressions matter—and so does visibility.
Selling your home is a major milestone, and making a strong first impression can be the key to attracting serious buyers and securing the...
Selling your property in the vibrant Wollongong and Illawarra region requires more than just listing it online—it demands a strategic...
Pricing your property correctly is one of the most powerful decisions you’ll make when selling real estate.
As a real estate agent, I'm frequently asked, "How's the market?
In real estate, timing can feel like everything.
If you’re a first home buyer in New South Wales, October 2025 is shaping up to be a pivotal moment.
Don’t even think about bidding without formal finance approval. Auctions are unconditional—if you win, you buy. No cooling-off.
Buying property at auction is one of the most dynamic and competitive ways to secure real estate in New South Wales.
Navigating the world of real estate can feel like learning a new language.
Spring is often hailed as the golden season for selling property.
Imagine owning a premium investment—then letting someone else handle everything.
When it comes to selling your property, transparency isn't just beneficial—it's essential.
In today’s digital world, it’s easy to think that everything.
When it comes to selling your home, presentation isn’t just important — it’s everything.
Interest rates are more than just a number—they're the heartbeat of the property market.
When it comes to presenting your property for inspection, simple touches — like putting the toilet seat down — could net you thousands...
When it comes to selling, every genuine vendor has two top priorities: sell in a reasonable time frame, and get the best possible price.
Too often, people want or hope for a figure that might not be realistic.
Discover the value of your property in today's real estate marketplace.
