Government’s First Home Buyer Deposit Scheme - Auction Market Impact
FIRST HOME BUYERS DEPOSIT SCHEME
From 1 October, all first-home buyers will be eligible to purchase a property with just a 5% deposit. The Federal Government will act as guarantor on lenders’ mortgage insurance, saving buyers tens of thousands of dollars and allowing them to enter the market years earlier than if they had to save a 20% deposit.
Key changes include:
No income caps and no place limits – opening the scheme to all first-home buyers.
Higher purchase caps – e.g. Sydney/ Newcastle up to $1.5m (previously $900k), regional WA up to $600k (previously $400k).
Immediate start date – brought forward from 2026 to 1 October 2025.
Auction Lens
This initiative will likely see a surge in first-home buyers at auction, especially in competitive metropolitan markets where saving a 20% deposit has been the biggest barrier. More buyers in the mix means stronger competition on auction day, which is positive for vendors.
However, the increased demand will also:
Put greater pressure on supply, already one of the central challenges in the housing market.
Potentially squeeze out some investors, as first-home buyers enjoy priority access and strong motivation to transact.
Drive more energy in the $600k – $1.5m auction segment, where the adjusted scheme thresholds now sit.
While independent experts have cautioned about risks (higher debt ratios, broader eligibility including high-income households), the short-term effect for auctions is clear: more bidders, higher intensity, and more competition at the coalface.
🔨 Why Holmes & Co Auctions?
Our award-winning auctioneers and team have built a reputation for delivering premium results across South-East Queensland, Northern NSW and the ACT. With our expertise, energy, and finely tuned strategies, we create the competitive environments that lead to outstanding sales.
Now is the time to take action - harness the power of auction, give your sellers confidence and certainty and be sold and settled before Christmas.
📞 Contact us today to capitalise on the Government’s First Home Buyer Deposit Scheme!