Rents aren’t falling, but they’ve finally stopped sprinting. Domain’s September report shows median house and unit rents in the combined capitals holding at $650/week, with most cities flat quarter-on-quarter.
What does this mean for us? Pressure’s easing at the margin, and some renters are shifting from “just coping” to “can I buy instead?” especially with entry-level stock and deposit-assist schemes in play.Steadier rents make rent-vs-repay comparisons more predictable, help first-home budgets land, and support clearer savings plans.
Coupled with gradually reducing interest rates, now is the perfect time for renters to refresh their borrowing power, run side-by-side rent/repayment scenarios, and line up pre-approvals.
In this week’s newsletter, we look at how federal and state first home buyer schemes can be “stacked” for even greater impact.
We’ve had a lot of enquiries over the past week from referrers and first home buyers alike asking whether they had to choose either a federal scheme, or a state based scheme when contemplating buying their first home in the current market. The good news is, for many first-home buyers, the can layer both federal and state help. Think of it as three building blocks:
- First Home Guarantee (Federal): Buy with a 5% deposit and no LMI because the government guarantees up to 15% of the loan. (Caps and eligibility apply.)
- Stamp-duty relief (State): Many states reduce or remove transfer duty for first-timers under certain price thresholds.
- Grants for new homes (State): Cash grants on eligible new builds or new homes, paid at settlement.
Put together, these can cut the up-front cash dramatically.
Quick examples (indicative only)
Victoria – $600k new townhouse (Melbourne)
- FHG: 5% deposit = $30,000 & no LMI.
- Stamp duty: $0 (full first-home exemption ≤ $600k).
- FHOG: $10,000 (new home).
- Result: Duty nil, a $10k boost at settlement, and only a 5% deposit to save.
Queensland – $750k new house (Brisbane/GC/SC)
- FHG: 5% deposit = $37,500 & no LMI.
- Stamp duty: $0 on eligible new first homes.
- FHOG: $30,000 (new home up to $750k).
- Result: Grant meaningfully offsets the deposit; duty removed.
New South Wales – $800k new apartment (Sydney)
- FHG: 5% deposit = $40,000 & no LMI.
- Stamp duty: $0 at ≤ $800k for eligible first-home buyers.
- FHOG: $10,000 (new home).
- Result: Minimal cash beyond the 5% deposit plus purchase costs.
The examples above illustrate quite low property values, because the federal and state rules don’t perfectly line up. Federal caps (especially under the First Home Guarantee) are often more generous than state stamp-duty or grant thresholds. That mismatch can limit how much you can “stack” on a given property price, so not everyone will benefit from layering every incentive.
If you’ve got a first-home buyer in mind, loop us in early. We’ll confirm eligibility, check both sets of caps, and map the best path forward, including deposit planning, duty estimates, and how to structure the loan to make the most of what’s available.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
