New Government Support for First Home Buyers: What You Need to Know in 2025

 



New Government Support for First Home Buyers: What You Need to Know in 2025

Including the New 40% Shared Equity Scheme

The dream of owning a home in Australia is becoming more achievable, thanks to a range of government programs designed to support first-time buyers. In 2025, one of the most exciting updates is the new 40% government shared equity contribution scheme. Here at Loans AU, we’re here to break it all down for you.


🏠 New 40% Shared Equity Contribution Scheme

As of 2025, eligible first home buyers may be able to access a government contribution of up to 40% of the property purchase price under a shared equity scheme.


How it works:

  • The government contributes up to 40% of the purchase price for new homes, or up to 30% for existing properties.

  • Buyers do not need to repay this contribution until the property is sold, refinanced, or ownership changes.

  • No interest is charged on the government’s share, but the government will own an equivalent share of the property’s equity.


Eligibility highlights:

  • Must be a first home buyer.

  • Be an Australian citizen or permanent resident.

  • Meet income and asset thresholds (limits apply).

  • Must live in the property as the primary place of residence.

This scheme is designed to reduce the upfront burden for home buyers and significantly cut down the size of the mortgage needed.


🧾 Other Key Home Buyer Assistance Programs in Australia


First Home Guarantee (FHBG)

  • Buy with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI).

  • For FY 2024–25, 35,000 places are available.

  • You must live in the property and meet income limits.


Regional First Home Buyer Guarantee (RFHBG)

  • Specifically for buyers purchasing in regional areas.

  • Also allows a 5% deposit, no LMI.

  • 10,000 places available in FY 2024–25.


Family Home Guarantee (FHG)

  • For single parents or guardians with dependents.

  • Allows purchase with just a 2% deposit.

  • 5,000 places are available in FY 2024–25.


First Home Owner Grant (FHOG)

  • A one-off payment (amounts vary by state/territory) to eligible first home buyers purchasing or building a new home.

  • Eligibility and grant amounts depend on your location and the value of the property.


🏡 Why This Matters for You

With rising property prices and cost-of-living pressures, government-backed home buyer support has never been more important. These schemes—especially the new 40% shared equity model—can significantly reduce the deposit required, help you avoid mortgage insurance, and cut down monthly repayments.


At Loans AU, we help you navigate these schemes and match you with lenders who support them. Our goal is to make homeownership more affordable, and more achievable.


Thinking of buying your first home?
Let our expert team guide you through the process—from eligibility to loan approval.


📞 Contact us today at Loans AU and take your first step toward homeownership.


#LoansAU #FirstHomeBuyer #SharedEquityScheme #GovernmentHomeSupport #AustralianPropertyMarket #HomeGuaranteeScheme #FirstHomeGrant #MortgageHelp #SydneyMortgageBroker #HomeOwnershipAustralia #HomeLoanAustralia #PropertyInvestment #FinanceTips

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