Bike Loan Finance Online :: News
SHARE

Share this news item!

Australia’s Housing Market: Navigating the First Home Guarantee Scheme

Australia’s Housing Market: Navigating the First Home Guarantee Scheme

Australia’s Housing Market: Navigating the First Home Guarantee Scheme?w=400
The Albanese government's new First Home Guarantee scheme, effective from Wednesday, aims to assist first-time home buyers by enabling them to purchase property with just a 5% deposit.
This means buyers won’t need to pay lenders’ mortgage insurance, as taxpayers will underwrite 15% of the mortgage.
This initiative has generated a lot of interest among potential buyers.

Research from Lateral Economics projects that this scheme could lead to a national house price increase of 3.5% to 6.6% by 2026, with sustained growth expected thereafter. However, in segments specifically targeted by first-home buyers under the scheme’s price caps, prices are anticipated to rise more sharply, ranging between 5.3% and 9.9%.

Sally Tindall from Canstar warns that the scheme is likely to amplify demand in an already heated property market, especially given the recent series of cash rate cuts. She suggests that banks see the scheme as an opportunity to expand their lending portfolios.

Cotality highlights a potential downside, noting that buyers using the scheme could pay over $130,000 more in interest over a 30-year loan at a steady 5.5% interest rate, compared to traditional mortgages.

Mortgage brokers, like Nathaniel Truong from Sydney, have observed heightened competition among buyers who can now borrow more due to the scheme. Truong shares examples where clients have increased their property budgets significantly, questioning whether savings on mortgage insurance translate into actual savings when overall spending climbs.

Eliza Owen from Cotality cautions that while early adopters of the scheme might benefit, subsequent first-home buyers could face challenges. As prices inflate, future entrants will confront a tougher market with higher prices and mortgages leading to greater debt burdens.

Owen raises concerns that small deposit requirements could lead to negative equity if the market experiences a downturn. Moreover, she posits that the government might be compelled to maintain policies that foster rising property values to safeguard their guarantee investments.

This intertwining of public policy and housing market dynamics suggests a move toward a state-backed property market, which could complicate efforts to stabilize or reduce prices in the future.

Published:Tuesday, 7th Oct 2025
Source: Paige Estritori

Share this news item:

Finance News

Australian Motorcycle Sales Experience Downturn in Early 2025
Australian Motorcycle Sales Experience Downturn in Early 2025
05 Oct 2025: Paige Estritori
The Australian motorcycle market has experienced a slight decline in sales during the first quarter of 2025, with a 3.5% decrease compared to the same period in 2024. This downturn reflects the broader economic challenges affecting discretionary spending among consumers. - read more
KTM Secures €600 Million Funding to Complete Restructuring Plan
KTM Secures €600 Million Funding to Complete Restructuring Plan
27 Sep 2025: Paige Estritori
Austrian motorcycle manufacturer KTM AG has successfully secured €600 million in funding to meet its debt obligations, marking a significant milestone in its ongoing financial restructuring. This development ensures the company's stability and continued operations in the global motorcycle market. - read more
Peter Stevens Motorcycles Enters Voluntary Administration Amid $65.9 Million Debt
Peter Stevens Motorcycles Enters Voluntary Administration Amid $65.9 Million Debt
27 Sep 2025: Paige Estritori
Peter Stevens Motorcycles, a cornerstone of Australia's motorcycle retail industry since 1970, has entered voluntary administration, revealing debts exceeding $65.9 million. This development casts uncertainty over the future of its 400 employees and numerous customers. - read more
Harley-Davidson Explores Sale of Financing Unit Stake Amid Market Challenges
Harley-Davidson Explores Sale of Financing Unit Stake Amid Market Challenges
26 Sep 2025: Paige Estritori
Harley-Davidson, the iconic American motorcycle manufacturer, is reportedly in discussions to sell a stake in its financing unit, Harley-Davidson Financial Services (HDFS). The potential deal, valued at around $5 billion, involves negotiations with Pacific Investment Management Co (PIMCO) and KKR & Co, according to Bloomberg News. - read more
Click for more Finance News


Bike Loans Articles

Understanding Insurance: What Every New Motorbike Owner Needs to Know
Understanding Insurance: What Every New Motorbike Owner Needs to Know
The experience of riding a motorbike is unmatched, offering a sense of freedom and adventure. But along with the excitement comes the responsibility of ensuring that both you and your bike are protected. - read more
Understanding Secured vs Unsecured Loans for Your Dream Motorcycle
Understanding Secured vs Unsecured Loans for Your Dream Motorcycle
Dreaming of hitting the open road on a brand-new motorcycle? Financing your motorcycle in Australia comes with several options to suit different needs and budgets. With the right loan, you can make your dream bike more accessible. However, choosing the right loan is crucial to ensure it aligns with your financial situation. - read more
How Prequalifying for a Bike Loan Can Make Your Purchase Hassle-Free
How Prequalifying for a Bike Loan Can Make Your Purchase Hassle-Free
Buying a bike can be an exciting journey, but navigating the financial aspect can sometimes feel overwhelming. This is where prequalifying for a bike loan can make all the difference. But what exactly does prequalifying mean? - read more
Planning Your First Long Ride: Tips for New Motorbike Owners
Planning Your First Long Ride: Tips for New Motorbike Owners
If you've just joined the ranks of motorbike owners, you're in for an unforgettable adventure. Owning a motorbike isn't just about getting from point A to B; it's about the thrill of the ride, the open road, and the freedom that only two wheels can offer. - read more


Free Assessment

Loan Amount:
Postcode:
All quotes are provided free (via our secure server) and without obligation. We respect your privacy.

Knowledgebase
Consumer Credit Code:
An act of Parliament that governs the relationship that exists between borrowers and lenders.

Quick Links: | Motorcycle Loans Australia | Motorbike Finance | Motorcycle Financing Options | Bike Loan Rates | Motorcycle Loan Calculator | Motorbike Loan Comparison | Motorcycle Loan Pre-approval | Motorbike Loan Terms | Motorcycle Loan Interest Rates | Motorbike Loan Repayment Options | Motorcycle Loan Application Process
This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.
IMPORTANT: We are neither authorised nor licensed to provide finance or financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party intermediaries, insurers and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for vaidating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.