Julian Finch: Changes to first home scheme likely to trigger violent property price rises
Announcement posted by Invigorate PR 27 Aug 2025
Julian Finch is warning that the property market is about to explode thanks to the Government's decision to fast-track changes to its first home owner scheme.
The Federal Government has announced it will bring forward major changes to the First Home Guarantee Scheme to 1 October, giving more Australians access to government-backed support for entering the property market.
The changes include the removal of income caps, previously $125,000 for singles and $200,000 for couples and significant increases in property price thresholds across the country. In New South Wales, the cap will jump from $900,000 to $1.5 million in Sydney and regional centres, while Victoria's cap will rise from $800,000 to $950,000. Queensland will see Brisbane and regional caps rise from $700,000 to $1 million. Other states and territories will also benefit from increases, with ACT rising from $750,000 to $1 million and South Australia's capital cap increasing from $600,000 to $900,000.
Julian Finch is the founder and CEO of Finch Financial. With decades of mortgage brokerage and commercial lending experience, Finch has helped thousands of Australians successfully navigate the lending process. Finch Financial has one of the highest loan approval rates in the country, often securing approvals within minutes. Considered the Money Man, Julian Finch has helped thousands of Australians get into the best-fit home loans fast and with minimal effort so they can buy their dream home or ideal investment property.
"While the changes appear positive, the impact may be far more complex and potentially damaging for affordability," he said.
"On one hand, this is good news, the removal of income caps and the increase in property price limits will open the scheme up to thousands more Australians who previously missed out.
"However, the reality is that more buyers with potentially unlimited incomes will now flood into the same price brackets, creating intense competition. This could drive prices higher and make it even harder for first home buyers on modest incomes to get a foot in the door.
"I think we are going to see the property market explode and prices soar."
Finch said the scheme effectively increases the amount of money flowing into the housing market, which will fuel price growth.
"Housing prices are set to explode because this scheme doesn't just create more buyers, it injects more money supply directly into a market already constrained by limited stock," Finch said.
"Combine stagnant housing supply with a sudden influx of demand and capital and you create the perfect conditions for a price boom."
He warned that the timing of the changes, right at the start of the spring buying season, combined with Australia's stagnant housing supply, could accelerate price growth in the short term.
"Just as first home buyers were starting to benefit from some relief in borrowing capacity due to interest rate easing, they are now set to face a surge in demand from new entrants into the scheme," he said.
"With supply failing to keep pace with population growth, this has all the hallmarks of a near-term property price surge that could lock out the very people the scheme was designed to help."
Finch also noted the irony in the Government positioning itself as supporting affordable housing.
"While these changes will undoubtedly allow more Australians to qualify, they risk having the opposite effect on affordability for the very group the scheme was designed to support; younger and lower-income first home buyers," Finch said.
What buyers should do now
Finch Financial advised first home buyers not to wait until October 1 to act.
"If you already have a pre-approval in place, now is the time to step up your search and try to secure a property before the changes come in," Finch said.
"If you're planning your first purchase, speak to us today about your borrowing capacity so you can make an informed decision about whether you'll be better off buying now or after the scheme changes.
"If you were previously ineligible, prepare yourself now for a scheme place post October 1 so you can move quickly when the changes kick in."
About Finch Financial Services
Based in Hurstville, NSW, Finch Financial Services has been servicing Australian families and businesses with home, personal and commercial loans as well as asset finance services since 2015. Ranked amongst the top five percent of brokerages in Australia according to data from the MFAA, Finch Financial Services is a leading brokerage and family-owned business that specialises in finding its customers loans that are tailored to their needs and goals.