Making Sense Of The Federal Budget: What It Means For First Home Buyers
If you’re a little confused about the latest federal budget update, you’re far from alone. Between negative gearing and capital gains tax, there are loads of hot-button reforms to wrap your heads around.
Especially if you want to get in on the housing market for the first time.
So we’ve teamed up with our mates at Homebuyers Centre, with expert finance, land, home and building services, to break down what the 2026–27 federal budget actually means for first-home buyers in Victoria.
Step 1: Understand What’s Actually Changed
Let's start with the big picture. The Albanese Government's latest budget has introduced some of the biggest changes to housing policy in years. The good news? The reforms are expected to help around 75,000 Australians purchase their first home over the next decade.
Expect increased access to the Help to Buy scheme, foreign buyer restrictions and a record $47 billion investment to boost housing supply. Plus, proposed tax changes to negative gearing and capital gains tax mean there’s less incentive for investors to buy existing homes, leading to potentially less competition at auctions.
The headline takeaway? The budget is aiming to give first-home buyers a leg up in the housing market. Hallelujah.
Step 2: See What Support You're Eligible For
One of the best opportunities for eligible first-home buyers is the Help to Buy shared equity scheme, allowing you to purchase with a much smaller deposit while the government chips in towards the purchase price. Basically, you may be able to borrow less and reduce your mortgage repayments from day one.
If you're purchasing or building a new home in Victoria, you could also be eligible for additional support depending on your circumstances, including the $10,000 First Home Owner Grant and stamp duty concessions,
Homebuyers Centre takes things up a notch with its $5,000 deposit initiative. In partnership with Resolve Finance, eligible buyers can secure selected house and land packages with just $5,000 upfront. Instead of spending years trying to save a traditional 20 per cent deposit, you could get your foot in the door (quite literally) much sooner than you expected.
Step 3: Note The Focus On New Builds
Investment in new housing is front and centre in this year’s budget. From July 2027, the proposed changes would limit negative gearing on future investment purchases to newly built homes. At the same time, the capital gains tax system would move away from the current 50 per cent discount on gains towards an inflation-based model.
So what does this have to do with you? Well, the government expects the reforms to shift investor demand toward new housing, rather than competing with first-home buyers for established homes. Over time, it could create a flow-on effect with more opportunities for buyers to break into the market.
Step 4: Keep Track Of Melbourne’s Falling Prices
There's been plenty of talk about Melbourne's recent property slowdown. And while falling house prices might sound a little alarming, it’s actually not the worst news if you're buying rather than selling.
Melbourne's median house price recently recorded its steepest quarterly decline in four years. But rather than mayhem, the result is a market that’s actually more balanced after several years of rapid growth. For first-home buyers, that can mean less pressure to make rushed decisions, fewer bidding wars and potentially more room to negotiate.
Step 5: Make Your Move With Confidence
If you’re dreaming of homeownership, it's important to find a pathway that works best for your budget and stage of life. That's where having experts on your side can make all the difference.
Homebuyers Centre has been helping Victorians get into their first homes for more than three decades. With their partnership with Resolve Finance, they offer an end-to-end approach that brings finance, land, home design, and construction under one roof. Whether you're exploring government incentives, comparing finance options or looking at house and land packages, having guidance from the get-go can help you understand exactly what's possible.
Buying your first home is always a big decision, but this year's federal budget has changed the conversation for the better. If getting onto the property ladder has felt out of reach, now could be the perfect time to make a move with Homebuyers Centre.
Editor’s note: This article is sponsored by Homebuyers Centre and proudly endorsed by Urban List. Thank you for supporting the sponsors who make Urban List possible. Click here for more information on our editorial policy.
*Terms and conditions apply, see Homebuyers Centre website for details. The building practitioner is ABN Group (Vic) Pty Ltd trading as Homebuyers Centre CDB-U 49215 and Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN 65 079 545 378, Australian Credit Licence No. 385487.
The information does not consider your personal needs and financial circumstances, and you should consider whether this is appropriate for you. First Homeowner Grant eligibility is at the discretion of the Victorian State Revenue Office, to find out more, click here. Scheme eligibility is at the discretion of Housing Australia, to find out more click here. Please note this is a guide only, this information may be revised for 2026/2027.
Images: Urban List