SA Expands Low-Deposit Home Loans and ACT Unlocks New FHB Houses — What First Home Buyers Need to Know

Two States Move to Help First Home Buyers Enter the Market

A new round of first home buyer support measures is taking shape at the state level. South Australia has expanded its low-deposit home loan offerings, and a new federal-ACT government deal is set to unlock thousands of new houses specifically for first home buyers in the territory.

These moves reflect the ongoing political pressure to address housing affordability — but they also highlight the limits of government schemes for buyers who fall outside standard eligibility criteria.

South Australia's Expanded Low-Deposit Scheme

South Australia has widened its low-deposit lending suite, giving more first home buyers access to property purchase with a smaller upfront deposit. The expanded scheme builds on the state's existing first home buyer support programs and is designed to reduce the deposit barrier in a market where saving a full 20% deposit can take many years.

Key features of SA's expanded offering include:

• Lower deposit thresholds for eligible properties
• Integration with the federal Home Guarantee Scheme (HGS)
• Targeted at first home buyers purchasing within property price caps

Who this helps: SA residents who are Australian citizens, purchasing within price caps, with income below the scheme thresholds. The scheme particularly benefits buyers purchasing in regional SA, where price caps are relatively generous.

ACT: Federal Deal to Unlock FHB Housing Supply

A new agreement between the federal government and the ACT has been designed to fund construction of thousands of new homes specifically for first home buyers. The deal aims to increase supply in Canberra's tight housing market, where limited land release and high construction costs have kept prices elevated.

The federal contribution will be conditional on the ACT meeting construction milestones — a supply-side intervention that complements demand-side support schemes.

The Limitations: Who These Schemes Leave Behind

Despite good intentions, state and federal first home buyer schemes share a common set of eligibility gaps:

For buyers in the excluded categories — particularly self-employed individuals and permanent residents — non-bank lenders can offer viable alternatives that don't rely on government scheme eligibility.

What Non-Bank Lenders Offer First Home Buyers Outside Schemes

At MPFG Capital, we regularly assist first home buyers who don't fit government scheme criteria:

For self-employed first home buyers: Our MPFG Bright Alt Doc product accepts income verification via BAS statements, accountant letters, or business bank statements — removing the requirement for payslips or ATO Notice of Assessments.

For permanent residents: Unlike federal HGS, we can assess PR holders for standard and Alt Doc lending without citizenship requirements.

For buyers above income thresholds: We assess serviceability based on actual capacity to repay, not government income caps.

The Broader Picture: Supply vs Demand

The SA and ACT measures are primarily supply- and demand-side interventions for scheme-eligible buyers. But Australia's housing affordability challenge is structural — new supply and deposit assistance alone won't resolve the gap for the millions of Australians who are self-employed, hold PR visas, or simply earn above arbitrary income thresholds.

The non-bank lending sector plays a critical role in ensuring these borrowers have access to competitive, flexible financing. MPFG Capital's national presence across Melbourne, Sydney, and Brisbane means we can serve first home buyers in multiple markets — with or without government scheme support.

Next Steps for First Home Buyers

1. Check scheme eligibility: Visit the federal Housing Australia website to see if you qualify for the HGS or your state's scheme
2. Get a borrowing capacity assessment: Regardless of scheme access, understanding your borrowing capacity is the critical first step
3. Speak to a specialist: If schemes don't apply to your situation, non-bank lenders like MPFG Capital can assess your options

Contact MPFG Capital at finance@mpfg.com.au or 03 9696 8888.

This article is general information only and does not constitute financial advice. Scheme details are subject to change. Always verify current eligibility criteria with the relevant state or federal authority.