Simple hacks to understand first home buyer numbers

What the Numbers Say About First Home Buyers Right Now

The First Home Guarantee was massively expanded from 1 October 2025 with no income caps and no place limits, fundamentally changing who can enter the market. In Brighton East, where the median sits well above many entry-level suburbs, this shift means buyers previously locked out by income thresholds can now access 5% deposit options without paying Lenders Mortgage Insurance.

The removal of income caps matters because many Brighton East buyers earn above the previous thresholds but still struggle to save a 20% deposit while paying rent in the area. A couple earning $160,000 combined can now use the scheme, whereas they would have been excluded entirely under the old rules. Combined with Victoria's stamp duty exemption up to $600,000 and concessions to $750,000, the entry cost has dropped significantly for those targeting units or smaller homes in the suburb.

How Victoria's Concessions Stack with Federal Schemes

Victoria's stamp duty help is straightforward: pay no duty up to $600,000, and a reduced amount up to $750,000 if eligible. When combined with the First Home Guarantee, buyers in Brighton East can enter the market with a 5% deposit and minimal upfront duty on properties within that range.

Consider a buyer purchasing a two-bedroom unit near North Road at $650,000. With a 5% deposit of $32,500, the First Home Guarantee removes the need for Lenders Mortgage Insurance, which would otherwise add around $20,000 to $25,000 to the upfront cost. The stamp duty concession reduces duty from approximately $34,000 to roughly $10,000. Together, these two measures save around $45,000 in entry costs, making the purchase feasible with genuine savings that would have been insufficient just two years ago.

The Role of the First Home Super Saver Scheme

The First Home Super Saver Scheme lets you save for a deposit inside superannuation at a 15% tax rate rather than your marginal rate, with contributions up to $15,000 per financial year and a total withdrawal of up to $50,000. For buyers in higher tax brackets common in Brighton East, the tax saving accelerates deposit growth.

A buyer earning $90,000 annually faces a marginal tax rate of 32.5%. By salary sacrificing into super for a deposit, they pay 15% tax instead, saving 17.5% on every dollar contributed. Over three years, contributing $15,000 annually builds $45,000 in the scheme, with tax savings of around $7,875 compared to saving the same amount in a standard savings account. This matters in a suburb where every additional dollar saved shortens the time to purchase.

Where Brighton East Buyers Are Finding Entry Points

Brighton East sits between the premium beachside strip and more accessible suburbs to the east. Most first home buyers in the area focus on older-style units along North Road or streets closer to Bentleigh East, where prices for two-bedroom apartments remain within the stamp duty concession range. Townhouses and villa units near Were Street or around the St Joan of Arc Primary School precinct also attract buyers using low deposit options combined with state concessions.

The suburb's proximity to Sandringham Hospital, strong public transport links via Bentleigh and Sandringham stations, and established shopping precincts make it appealing for buyers who work in the CBD or Monash employment hubs. Unlike neighbouring Brighton, where established homes rarely fall below $1.5 million, Brighton East offers a more varied property mix that includes accessible entry points for those willing to start with a unit or townhouse.

How Lenders View First Home Buyers Using the Guarantee

Lenders treat applications under the First Home Guarantee the same way they assess any home loan application, with the key difference being they do not charge Lenders Mortgage Insurance on eligible purchases. Your borrowing capacity, employment stability, and existing debts still determine how much you can borrow.

In our experience, buyers sometimes assume the scheme increases how much they can borrow. It does not. A buyer with a 5% deposit and a buyer with a 20% deposit both face the same serviceability test. The scheme removes an upfront cost, but your income, expenses, and credit history remain the primary factors in approval. For buyers in Brighton East where purchase prices are higher, this means running the numbers carefully before committing to a property at the top of your pre-approved range.

What Happens When You Outgrow Your First Purchase

Many buyers in Brighton East use their first purchase as a stepping stone, either selling to upgrade or retaining it as an investment while moving to a larger home. If you retain your first property and purchase a second, you lose access to first home buyer concessions on the next purchase, but you gain the option to hold an investment that benefits from the suburb's long-term capital growth.

Alternatively, selling your first home after a few years and using the equity to upgrade within Brighton East or nearby suburbs like Hampton East or Bentleigh remains a common path. The key consideration is whether the property you buy now will hold value and appeal to future buyers if you do sell. Units near transport, schools, and shopping precincts tend to perform more consistently than those on main roads or in smaller blocks with high owner-occupier turnover.

Using Pre-Approval to Move Quickly in a Tight Market

Brighton East has limited stock compared to higher-density suburbs, so buyers often compete for the same properties. Pre-approval gives you certainty about your budget and lets you make an offer without a finance condition, which can be the difference between securing a property and losing it to another buyer.

Pre-approval involves a lender assessing your income, expenses, and deposit, then confirming how much they will lend. Most pre-approvals last three to six months, giving you time to find the right property without rushing. For buyers using the First Home Guarantee, confirming your lender participates in the scheme before applying avoids delays. Not all lenders offer the same level of access to the scheme, so working with a mortgage broker in Brighton East who knows which lenders are processing applications efficiently can save weeks during the purchase process.

Call one of our team or book an appointment at a time that works for you. We will walk through your eligibility for state and federal schemes, confirm your borrowing capacity, and structure your application to make the most of the concessions available to you.

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