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Since launching in January 2020, the scheme has supported a broad cross-section of buyers, including almost 60,000 key workers, more than 99,000 regional Australians, and close to 6,000 single women with dependents.
Participation has skewed younger, with around half of all buyers under 30, while women account for half of participants. The initiative has also contributed to housing supply, with close to 30,000 new homes built.
Recent expansions have significantly widened access. Following changes in July 2023, more than 48,000 permanent residents and over 2,700 group applicants have been supported, reflecting evolving buyer structures.
Access was further expanded in October 2025 through the removal of income caps, increased property price caps, and the introduction of unlimited places.
The scheme enables eligible buyers to enter the market with as little as a 5 per cent deposit, with Housing Australia guaranteeing up to 15 per cent of the loan (or up to 18 per cent for single parents), allowing borrowers to avoid lenders mortgage insurance (LMI).
Key successes and improvements
Brokers working with clients utilising the scheme have praised it as a positive step towards increasing home ownership among Australians but have said there is still room for improvement.
Speaking to Broker Daily, Alex Veljancevski, director of Eventus Financial, said the changes have “been very positive”, helping bring more buyers into the market sooner while giving brokers “another practical tool” to structure solutions that were previously out of reach.
“The key success has been bringing more new buyers into the market and improving access to home ownership,” he said.
Similarly, Daniel Kaminsky, senior broker at Loans 4 Homes, said the scheme has enabled borrowers to enter the market without relying on guarantors while also pointing to lender pricing parity with standard 80 per cent LVR loans as a major benefit.
“This has been great in allowing first home buyers to gain a foothold in the market when parents weren’t able to assist as guarantors,” he said.
Michaela Shaw, broker for MoneyQuest Penrith, added: “The biggest success is the confidence it's given buyers - people who thought homeownership was years away are realising it's actually achievable now.
“If there's one area to improve, it'd be widening lender availability. The scheme is still limited to a relatively small panel of lenders, and giving buyers access to a broader range would mean more competition on rates, policy, and products which can only be a good thing."
Nicholas Hakim, founder and principal of Skyline Brokers, said increased price caps have been particularly impactful in higher-priced markets, allowing clients to purchase sooner and avoid LMI.
However, he noted stamp duty remains a significant barrier.
“On a $1.5 million purchase, buyers are still required to pay roughly $65,000 in stamp duty, which remains a significant barrier. In my view, aligning the stamp duty exemption caps with the FHGS price caps of up to $1.5 million would make a meaningful difference,” he said.
Rebecca Jarrett-Dalton, founder of Two Red Shoes, also welcomed the scheme’s progress but cautioned that clearer communication is needed around upfront costs.
“We certainly saw prices rising particularly in the first few months after the expansion of the scheme so some downside comes along with the bonus,” she said.
“The challenge for this now is that that ‘beginner price point’ is now above the limits for the stamp duty exemption, so first home buyers are having a harder time chasing those savings.
“Separately, the overall marketing of the scheme as just being a 5 per cent deposit does cause some confusion among potential buyers… they’ve got costs such as stamp duty and legal fees to allow for as well.”
Market impact and demand outlook
Brokers said the scheme has had a clear stimulatory effect on housing activity, particularly within its price brackets.
Broker Daily has previously reported that lower-priced homes have outperformed higher-value properties following the scheme’s expansion, reflecting increased first home buyer activity.
Hakim pointed to a “clear upswing” in both market activity and property values, although he noted a shift in momentum.
“That said, there is a noticeable shift in momentum from first home buyers toward investors. Many investors see the current market as an opportunity to enter ahead of the broader upswing,” he said.
Kaminsky described an initial surge in demand at lower price points following the scheme’s rollout, driven by urgency and competition, before conditions eased.
“Initially it created significant hype at lower price points, then slightly slowed the market once the price caps increased and income thresholds were removed. Additionally, removing the cap on available spaces reduced ‘FOMO,’” he said.
Jarrett-Dalton also observed a sharp spike in activity following the October expansion, before a period of moderation.
“The market was absolutely red hot immediately after 1 October… people were trying to get in before what they predicted would be price rises, and they were not wrong,” she said.
While activity has since slowed amid rate hikes and global uncertainty, she said demand is likely to remain resilient, particularly given ongoing rental pressures.
“It’s interesting to note that the family pledge loan… has more or less disappeared – we would be seeing only a handful of these since the expansion of the scheme,” she added.
[Related: First home buyers power spike in mortgage activity]
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