🗳️ First Home Buyer Election Promises: What Labor and the Coalition Are Offering in 2025
With Australians heading to the polls on May 3, housing affordability is front and centre—and first home buyers are watching closely. Both Labor and the Coalition agree: buying your first home has never been tougher. But their solutions? Very different.
If you’re dreaming of ditching the rental cycle and stepping into your own place, here’s what each party is pledging—and how it could impact your journey to home ownership.
🔍 Why Housing Affordability Is a Hot Election Topic
Housing demand is outpacing supply, with estimates suggesting a shortfall of 163,400 dwellings by 2032. That’s a big gap—and both major parties are racing to close it, especially for first-time buyers.
Explore our property market insights to see how local supply and demand are shifting.
🟥 Labor’s Plan: Build More Homes, Slash Deposit Barriers
🏗️ $10 Billion for 100,000 New Homes
Labor is promising a $10 billion investment to build up to 100,000 homes exclusively for first home buyers. The goal? Boost supply and give more Aussies a shot at ownership.
💸 Expanded First Home Guarantee Scheme
Labor wants to make it easier to buy with just a 5% deposit—and no Lenders Mortgage Insurance (LMI). That’s a potential saving of thousands.
Learn more about the current First Home Guarantee via the National Housing Finance and Investment Corporation (NHFIC).
Key changes include:
• Scrapping income limits so all first home buyers qualify, regardless of earnings
• Raising the property price caps to reflect today’s market
• Keeping the 5% deposit requirement, making entry more achievable
🏡 Help to Buy Scheme Expansion
Labor also plans to expand its Help to Buy scheme, where the government chips in up to 40% of your home’s purchase price. You can buy out their share later, giving you more flexibility upfront.
🟦 The Coalition’s Plan: Tax Breaks and Super Access
💰 Mortgage Interest Tax Deduction
The Coalition is proposing a First Home Buyer Mortgage Deductibility Scheme, allowing buyers to claim home loan interest as a tax deduction.
But there are conditions:
• Must buy or build a brand new home
• Deduction applies only to the first $650,000 of your loan
• Only valid for the first five years
• Income limits: up to $175,000 for individuals, or $250,000 for couples
🏦 Supercharged Deposit Option
Under the Coalition’s plan, first home buyers could use up to $50,000 of their superannuation to buy a home. The catch? You’ll need to return the funds to your super when you sell the property.
Check out the First Home Super Saver Scheme for current rules and eligibility.
📈 Boosted First Home Guarantee Scheme
Like Labor, the Coalition wants to:
• Increase income eligibility
• Raise property price caps
• Remove the cap on the number of buyers who can access the scheme each year
🏠 What Does This Mean for You?
Whether you’re team Labor or Coalition, both parties are offering real incentives to help first home buyers get ahead. From low deposit schemes to tax breaks and shared equity, there’s plenty to consider.
Explore our First Home Buyer Hub for guides, calculators, and expert tips tailored to your journey.
💬 Need Help Navigating Your Options?
Buying your first home is exciting—but it can also feel overwhelming. At CBM Mortgages, we cut through the jargon and help you understand what’s available, what’s realistic, and what’s right for you.
📞 Ready to explore your options?
Reach out via our Contact Page or book a free consultation to chat about how these election promises could work in your favour—no matter who wins on May 3.
⚠️ Disclaimer
This article is for general information only and doesn’t constitute financial or tax advice. Always consider your personal circumstances and seek professional guidance before making decisions.
Revised by Craig McDonald, 12/08/2025
