What Labor’s Re-Election Means for First-Home Buyers and Builders in 2025
What Labor’s Win Means for First-Home Buyers and Builders
Housing affordability and access were again front and centre during the federal election – and with Labor securing re-election, there’s a renewed focus on helping first-home buyers break into the market and supporting builders to meet demand. From deposit guarantees to shared equity schemes and new-build commitments, several key policies are set to reshape the Australian property landscape.
But beyond policy promises, what does this mean in real terms – especially for builders, developers, and the clients we work with every day at Renown Lending?
Labor's Expanded Support for First-Home Buyers
1. More 5% Deposit Loans Without LMI
Labor’s plan to expand the First Home Guarantee scheme is set to benefit thousands more Australians. By removing income and property price caps, the scheme will allow more first-home buyers to access a 5% deposit option without paying lenders mortgage insurance (LMI) – a move that could save borrowers tens of thousands.
With the government guaranteeing 15% of the loan, the program provides peace of mind to lenders and a leg up for young Australians looking to get into the market sooner.
2. 100,000 New Homes Earmarked for First-Home Buyers
To meet demand, Labor is investing $10 billion into building 100,000 new homes, exclusively for first-home buyers. These homes will be priced relative to state and regional medians – such as $1.3 million in Sydney or $950,000 in Melbourne – helping ensure affordability is matched with supply.
This also creates opportunity for builders and developers who can deliver stock into this targeted segment, particularly in regional hubs where growth is accelerating.
3. Help to Buy Shared Equity Scheme
Rolling out later this year, this scheme allows eligible first-home buyers to purchase with as little as a 2% deposit, with the government contributing up to 30–40% of the property price. This reduces the loan size, monthly repayments and barrier to entry. Income thresholds have also been lifted, increasing access.
What This Means for Builders and Developers
With these reforms and the government pushing hard on new housing stock, we anticipate a spike in construction starts over the next 12–24 months. But rising build costs, delays in finance approvals, and the unique needs of smaller builders mean many may struggle to deliver without flexible funding options.
That’s where Renown Lending steps in.
How Renown Lending Supports Builders with Construction Loans
We work closely with builders, developers, and property professionals to provide construction loans tailored to their timelines, cash flow, and project scope. Whether it’s a townhouse development, duplex build, or a first-home buyer-focused new home project, we provide:
✅ Fast approvals – often within 48 hours of receiving key docs
✅ Up to 70% LVR on "as if complete" valuations
✅ Staged construction funding to match your progress schedule
✅ No upfront lender fees and transparent terms
✅ Solutions for builders outside traditional bank criteria
Our team understands the nuances of construction lending – we don’t just tick boxes; we build relationships.
A Word to First-Home Buyers
If you’re looking to purchase or build your first home, now is the time to explore your options. Between federal and state-level incentives, there’s more assistance than ever before. We encourage you to speak to a broker or lending expert who understands both the policy and the practical side of home buying.
Final Thought
Labor’s win signals continuity and potential growth for both home buyers and builders. But navigating these policies and accessing capital can still be a challenge. At Renown Lending, we’re proud to be supporting both sides of the housing equation — helping buyers into their first home and funding the builders who make it happen.
