Let’s dive into the key implications for mortgages and property investment following the 2025 Federal Budget announcement. This blog covers:

  • First-home buyer assistance through the soon-to-be-launched Help to Buy Program.
  • Two-year ban on foreign property investors.
  • Tax relief on student HELP loans/debts.

First-home buyer assistance through Help to Buy

To help first-time home buyers, the shared equity program “Help to Buy” has been expanded, with the government committing approximately $800 million—bringing the total budget to $6.3 billion until 2028-29—to increase property price and income caps. This initiative aims to enhance accessibility through two measures:

  1. A reduced deposit required.
  2. An equity stake of the property’s value covered by the government, to be paid off over time or when the property is sold.

The equity stake contribution will either be:

  • Up to 40% in a government contribution for new builds.
  • Up to 30% in a government contribution for existing properties.

The example given in the Budget is that first-home buyers purchasing an established property/home for $800,000 with a $50,000 deposit could save around $1,464 per month on mortgage payments through this initiative.

The Help to Buy program hasn’t started yet, but the legislation passed Federal Parliament in November 2024 and it’s expected to launch this year. Housing Australia will administer the Help to Buy program and updates will be available on its website click here.

Two-year ban on foreign property investors

The government has committed to banning foreign property investors, including temporary residents and foreign-owned companies, from buying dwellings in Australia for two years from 1 April 2025 .

This means that more dwellings will be available to Australians to buy that otherwise would have been bought by foreign investors. However, exceptions apply for when those investments would increase housing supply.

The Australian Taxation Office (ATO) will receive funding to enforce the ban and to develop a new audit program and a “crackdown” on land banking.

Tax relief on student HELP loans/debts

To reduce student debt burdens, the government is implementing a one-time 20% reduction on Higher Education Loan Program (HELP) debts before those debts are indexed on 1 June 2025. The minimum repayment income threshold will increase to $67,000 in the next financial year (up from $54,435 in 2024-25) meaning repayments will only apply to income above this threshold.

The example given in the Budget is that a HELP debt of $35,000 will be reduced by $7,000 as of 1 June 2025 and means that the HELP debt is $28,000—plus the annual index rate as outlined by the ATO.

This means borrowers with HELP debts will see their borrowing capacity improve when applying for a loan. But as always, this is still a debt that will increase the longer you take to pay off. Your Get Real Finance broker is here to help you assess your strategy for paying off student loans.

The team at Get Real Finance can help

There’s a range of relief and stimulus available for people in various circumstances. The impact on your take-home pay, business income, and investment returns will likely change following the Budget. At the same time, your personal circumstances could have changed or will change soon…This could be school fees due to start or end, a relationship breakdown or startup, or it might be time for a new home or investment property.

Whatever the scenario, we’re here to support our clients by recommending ways to improve cash flow.

Call us on 07 3852 5755 or email us at admin@getrealfinance.com.au to book an info and strategy session.

Related article: 2024 Federal Budget: Implications for mortgages and property investment.

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