Unlocking the Door to Home Ownership, But Move Fast

First Home Buyers in Launceston: What the New Federal Scheme Means for You

Federal policy is shifting—and fast. In a bold move, the Albanese government has brought forward the launch of the expanded First Home Guarantee Scheme to October 1, 2025.

This change allows first home buyers in Launceston and across Tasmania to enter the market with just a 5% deposit and zero lenders mortgage insurance (LMI), thanks to a government-backed guarantee covering up to 15% of their loan.

Director Terry sums it up best:

“Terrific news for First home buyers that the government is allowing such a small deposit with no lenders mortgage insurance. Between this and rate cuts it will put prices of dwellings up so get in as quick as you can before prices increase as the scheme is used up by other participants.”

For Launceston buyers, this could mean saving thousands on LMI—funds that can go straight into your deposit, furnishings, or renovations. While Sydney buyers might skip ~$42,000 in LMI, the savings in Tasmania will still be significant given our lower price points.

What Does This Mean for Launceston Property Prices?

Reports suggest the scheme will increase buyer demand nationwide, and Launceston is no exception. The Insurance Council–commissioned Lateral Economics report models price jumps between 3.5% and 6.6% in 2026, with some regions seeing even higher spikes.

With Launceston already experiencing strong interest from both locals and interstate buyers, increased demand could see more competition—pushing prices up faster in suburbs like Newstead, East Launceston, and Riverside.

Final Thoughts

For first home buyers in Northern Tasmania, this may be one of the most enabling policies in years. But with opportunity comes urgency and careful planning:
✔ Get your pre-approval in place early
✔ Stay across Launceston market trends
✔ Work with a trusted local agent to find value before demand spikes

And remember—supply is still limited, so the sooner you act, the better.