Why Homeownership Is Still the Great Australian Dream in 2025
Despite Rising Costs, Aussies Are Still Keen to Buy
Even with the cost of living climbing and interest rates rising over the past two years, Australians haven’t given up on homeownership. In fact, the dream is alive and well.
According to the Commonwealth Bank Household Spending Insights Index, homebuying intentions rose by 0.5% in May 2025, following a flat April. This marks a steady rebound in buyer sentiment, despite financial pressures. New home sales also increased for the second consecutive month, showing that many are still determined to get on the property ladder.
So, what’s fuelling this determination—and how can you make your own homeownership dream a reality?
The Rental Squeeze Is Driving Buyers to Act
Record-Low Vacancy Rates
Across Sydney and other capital cities, rental vacancies hit a record low of 1.1% in April, pushing rents to historic highs. The median cost of renting a unit is now just $39 less per week than renting a house.
Migration and Demand
A surge in overseas migration has intensified competition for rentals. In the March quarter alone, rental enquiries from one overseas country jumped 124% year-on-year.
With rental stress mounting, many Aussies are choosing to ditch renting and buy instead—even if it means navigating a tougher lending environment.
How to Make Buying More Affordable in 2025
Government Schemes That Can Help
There are several federal and state government schemes designed to help first-home buyers enter the market sooner—and they can often be used together.
Federal Schemes via NHFIC
Through the National Housing Finance and Investment Corporation (NHFIC), eligible buyers can access:
- First Home Guarantee – Buy with just a 5% deposit
- Regional First Home Guarantee – For buyers in regional areas
- Family Home Guarantee – For eligible single parents with a 2% deposit
These schemes also waive lenders mortgage insurance (LMI), potentially saving you $4,000 to $35,000, depending on your deposit and property price.
Stamp Duty Concessions
Stamp duty is one of the biggest upfront costs when buying a home—but first-home buyer concessions can ease the burden. For example:
- NSW offers exemptions or discounts for eligible buyers
- South Australia recently scrapped stamp duty for new homes up to $650,000
- Other states and territories including VIC, QLD, WA, TAS, ACT, and NT also offer concessions
Check your eligibility on the Revenue NSW website.
First Home Owner Grants
Most states offer First Home Owner Grants (FHOG) of $10,000 to $30,000, depending on location and property type. These grants can be a game-changer when it comes to covering upfront costs.
Act Fast – Scheme Places Are Limited
It’s important to note that spots for schemes like the First Home Guarantee are limited and fill up quickly. If you’re serious about buying, it pays to get in early.
Let’s Make Your Homeownership Dream a Reality
At CBM Mortgages, we help first-home buyers:
- Understand their borrowing power
- Compare loan options
- Navigate government schemes
- Avoid costly delays—like in this case study on settlement penalties
Call us today on 02 8068 0534 or visit CBM Mortgages to get started.
Further Reading:
- Recent RBA rate drops
- When will the next RBA cash rate call be made?
- First Home Buyer Grants – Revenue NSW
- Are you looking at a small property
- Are you looking for a Mortgage broker in Paddington
Disclaimer:
The information provided in this article is for general guidance only and does not constitute financial or tax advice. It does not consider your personal circumstances. Before making any financial decisions, seek professional advice from a licensed mortgage broker or financial consultant. This content is protected by copyright laws and may not be modified, reproduced, or republished without prior written consent.
Written by Craig McDonald 15/06/2025
