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First Home Buyers: Why Now Is the Best Time to Prepare for 2026

  • Dec 9, 2025
  • 3 min read

First Home Buyers - Prepare for 2026

As 2025 comes to a close, more first home buyers are starting to look ahead to the opportunities 2026 may bring. With interest rates stabilising, lending policies shifting and more homes expected to hit the market, the outlook is increasingly positive for Australians entering the property market for the first time.


If you're hoping to buy your first home in 2026, the smartest move you can make right now is to start preparing before the new year begins. Here’s what’s changing — and how to get ahead.



1. Borrowing Power Likely to Increase for First Home Buyers in Early 2026


Throughout 2025, lenders made several adjustments that have quietly improved borrowing capacity for many first home buyers. This trend is expected to continue into early 2026.


Key changes that may boost your borrowing power include:


  • Reduced assessment rates

  • More realistic household expense models

  • Lower credit card repayment assumptions

  • Improved treatment of HECS/HELP debt

  • Enhanced servicing for dual-income households


These updates could increase your budget by thousands — even tens of thousands — of dollars, opening the door to more suburbs and more property options.



2. First Home Buyer Schemes Expected to Reset in 2026


Federal and state first home buyer initiatives are expected to refresh as the new year begins, including:


  • First Home Guarantee

  • Regional First Home Buyer Guarantee

  • Family Home Guarantee

  • Potential updates to state stamp duty concessions or exemptions


These schemes can significantly reduce the deposit required and accelerate your path to home ownership. Getting prepared now gives you the best chance of securing a spot before allocations fill up.



3. More Homes Could Hit the Market in Early 2026


Many sellers held back in late 2025 due to uncertainty. As confidence returns, early 2026 is expected to deliver:


  • More listings across entry-level price ranges

  • Greater variety in units, townhouses and family homes

  • More realistic vendor expectations

  • Improved conditions for first home buyers


Being ready with your pre-approval will help you act quickly when the right opportunity appears.



4. Rate Movement in 2026 Could Favour First Home Buyers


While large rate cuts aren’t guaranteed, indicators show that lending markets may ease in 2026. Even minor rate adjustments can:


  • Improve borrowing power

  • Make repayments more affordable

  • Lead to sharper fixed and variable rate options

  • Increase competition among banks


Those who prepare early will be best positioned to secure attractive deals when they do arise.



5. Why Preparing Now Puts You Ahead for 2026


Completing a borrowing power check or First Home Buying Plan before the end of 2025 will give you:


  • A clear purchasing budget

  • A realistic savings target

  • Suburb and property options aligned to your price range

  • Early access to first home buyer schemes

  • A simple, step-by-step plan to follow in 2026

  • Confidence heading into your property search


Starting now is the easiest way to reduce stress, stay organised and give yourself the best chance of purchasing your first home in 2026.



Planning to Buy Your First Home in 2026? We Can Help.


Ascot Mortgage specialises in supporting first home buyers from the moment they start planning until long after they collect their keys.


We offer:


  • Our service is completely fee-free

  • Dedicated First Home Buying Plans tailored to your budget and goals

  • Access to 40+ lenders with first-home-buyer-friendly options

  • Post-settlement support and ongoing rate reviews

  • Step-by-step guidance from pre-approval to settlement


Make 2026 the year you take your first step into the property market.



 
 
 

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