Australian Labor Party Announces Policy on Buying a House with Only 5% – Opening Up the Dream of Settlements for First-Time Home Buyers
The Australian Labor Party has announced the early implementation of a 5% down payment policy for all first-time home buyers, effective from 1 October 2025 instead of initially planned next year, to address the ongoing housing crisis.
Breakthrough in housing policy of the Australian Labor Party
This decision marks a historic turning point in the issue of home ownership. For the first time in decades, the financial barriers that have long prevented younger generations from owning their first home are being thoroughly removed.
Under the new policy, the Government will underwrite a portion of first-time buyers’ home loans, allowing them to buy a home with a lower down payment without having to pay for lender mortgage insurance (LMI), a cost that can run into tens of thousands of dollars. What is especially important is that this program does not limit the number or income level, creating equality for all Australian citizens.
Nationwide impact: In the first year alone, first-time home buyers using the program are expected to save around A$1.5 billion from not having to pay mortgage insurance.
In Brisbane: A first-time home buyer can buy a house worth A$1 million with just a down payment of A$50,000. They can save up to 10 years of down payment accumulation time, save around A$42,000 on mortgage insurance, and can pay up to A$350,000 towards their own loan instead of paying rent.
See more: Exemption from registration tax for first-time home buyers
Long-term vision
Following consultation, the Government will also direct Housing Australia to promote the diversity of lending institutions participating in the program, providing more choice for first home buyers.
This is just one part of the Australian Labor Party’s ambitious $43 billion housing program. The Government is committed to building more homes, supporting first-time home buyers, and protecting the rights of renters.
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