How Will Albanese’s Re-Election Impact the Australian Property Market?
With Prime Minister Anthony Albanese securing a historic victory in the 2025 federal election, the Australian property market is set for some significant changes. As a leading mortgage brokerage, Gain Home Loans is here to break down what this means for home buyers, investors, and homeowners.
A Big Win for First-Home Buyers
One of the most promising changes is the expansion of the First Home Buyer Guarantee scheme, set to roll out in January 2026. The scheme will allow eligible first-time buyers to purchase a property with just a 5% deposit without the need for Lenders Mortgage Insurance (LMI).
What makes this even more impactful is the removal of income caps and participation limits. This means that more Australians can take advantage of the scheme, giving a significant boost to those looking to enter the property market for the first time.
What to Expect:
- A surge in demand, especially in urban hotspots like Sydney and Melbourne.
- Property prices could see an 8–15% increase in early 2026 as more buyers enter the market.
- Gain Home Loans can help you get pre-approved and secure your place in the market before demand skyrockets.
Addressing Housing Supply Issues
Albanese’s government has committed to building 1.2 million new homes by 2029, including 30,000 social and affordable homes over the next five years, funded by the $10 billion Housing Australia Future Fund.
However, despite this ambitious target, there are potential challenges:
- Labor Shortages: The construction sector is already facing workforce constraints.
- Land Availability: Some regions, particularly in New South Wales, may struggle to accommodate the planned developments.
For prospective buyers, it’s crucial to stay ahead of the market by getting expert guidance from mortgage brokers who understand how to navigate these changes.
Stability for Property Investors
The good news for property investors is that the Albanese government has ruled out changes to tax incentives like negative gearing and capital gains tax discounts. This stability means that investment strategies can remain consistent, allowing investors to make long-term plans with confidence.
Gain Home Loans Tip:
- Consider refinancing to take advantage of any upcoming rate cuts.
- With stable tax policies, now might be the perfect time to assess your investment portfolio.
Relief from Rising Interest Rates
Mortgage stress has been a key concern for many Australian homeowners, with around 75% of borrowers now spending more than a third of their income on repayments. The Reserve Bank of Australia is expected to reduce interest rates from 6% to around 5%, offering some relief.
However, with one in ten homeowners having missed a repayment recently, it’s vital to stay proactive. Gain Home Loans can assist you with refinancing options and finding competitive rates to ease your financial strain.
Foreign Investment Restrictions
To help ease housing pressures, the government has introduced a two-year ban on non-citizens purchasing existing homes, starting February 2025. This policy aims to increase housing availability for Australian residents and reduce competition from foreign buyers.
This change could positively impact the market by stabilizing housing demand, especially in major cities. If you’re considering buying or investing, now may be the right time before the policy takes full effect.
What Does This Mean for You?
At Gain Home Loans, we understand that navigating the changing property market can feel overwhelming. Our team of expert mortgage brokers is here to guide you through these changes and help you find the right home loan options, whether you’re a first-home buyer, investor, or homeowner looking to refinance.
Get in touch with us today to discuss your property goals and see how we can support you during this transformative period in the Australian property market.
Get in Touch with Gain Home Loans
Navigating the evolving property market can be challenging, but you don’t have to do it alone. Whether you’re looking to buy your first home, invest, or refinance, our team at Gain Home Loans is here to help.
📧 Email us: info@gainhomeloans.com.au
📞 Call us: 1800 467 959
🌐 Visit our website for more information: Gain Home Loans
Let our experts guide you through the changing landscape and find the best mortgage solution for your needs.
