The re-election of the Albanese-led Labor government in a decisive 2025 victory has placed housing and lending policies at the centre of the national agenda. With cost-of-living pressures mounting and mortgage stress reaching critical levels, the government faces immediate expectations to deliver meaningful relief to homeowners and first-home buyers alike.
Mortgage Stress at Crisis Levels
According to research from Finder.com.au, about one in five homeowners are spending more than half their income on mortgage repayments, and nearly three-quarters are experiencing mortgage stress—defined as spending more than 30% of income on housing costs. One in ten have already missed a repayment in the past six months.
Finder money expert Rebecca Pike said budget promises including tax cuts, energy rebates, and student loan discounts may help alleviate pressure. “This will be a huge help for so many struggling Aussies who have been battling rising costs,” Pike said.
Yet Finder home loans expert Richard Whitten cautioned that more cuts to interest rates may be necessary: “Many families will still face tough financial choices to keep their homes… Unexpected costs could spell serious financial trouble for many homeowners.”
Labor’s Housing Agenda: What’s Promised?
Labor’s re-election secures the continuation of its $43 billion housing agenda, which includes:
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$10 billion Housing Australia Future Fund to build 100,000 homes over eight years, prioritised for first-home buyers.
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A 5% Deposit Scheme, helping first-home buyers purchase with a reduced deposit.
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A Shared Equity Scheme assisting up to 40,000 first-home buyers by co-purchasing with the government.
Leanne Pilkington, president of the Real Estate Institute of Australia (REIA), welcomed the support, stating: “Labor’s return to office comes with a strong mandate to tackle affordability and increase home ownership across the country.”
Ray White chief economist Nerida Conisbee said the Albanese government’s re-election could deliver mixed outcomes for the housing market. While Labor’s first-home buyer initiatives could boost demand in more affordable areas, this may push prices up slightly in the short term — a positive for existing homeowners. However, further interest rate cuts are likely on the way, which could, in turn, ease financial pressure for many households. While she acknowledged unemployment as a key risk to watch, she also highlighted that the government has options — such as temporary mortgage support — should conditions change.
A Call for Immediate Action on Supply
A consistent message from the property industry is that increasing housing supply must be prioritised immediately.
“Housing Australians must not become a casualty of politics-as-usual,” said Housing Industry Association (HIA) managing director Jocelyn Martin. “The Federal Government has the influence, the resources and the leadership role… to move the dial on supply and affordability — not just tinker at the edges.”
The plan to unlock Commonwealth-owned land and streamline development with state and territory support was seen as one practical step toward that goal.
Wendy Hayhurst, CEO of the Community Housing Industry Association (CHIA), said: “We believe this term of government presents a real opportunity to accelerate recent progress in transforming Australia’s housing landscape.”
What This Means for Borrowers and Buyers
The re-elected Labor government’s housing policies bring renewed opportunities for first-home buyers and current homeowners alike. With measures like the 5% Deposit Scheme and Shared Equity Scheme, getting into the property market is now more achievable than ever.
Recent interest rate cuts, and the prospect of more to come, are also providing welcome relief, helping reduce repayments and open up refinancing options for many households.
If you’re looking to buy your first home, upgrade, or simply get on top of your current loan, now is a great time to review your finances. The right support can make all the difference, and we’re here to help you every step of the way, from comparing loan options to navigating government incentives.
With the property market evolving and new policies taking shape, it’s the perfect moment to get your home loan sorted with confidence.