The 2025–26 Federal Budget offers a blend of modest personal income tax cuts, extended homebuyer programs, and continued support for small businesses. For mortgage brokers, these measures could mean slightly better borrower capacity at the entry level. However, if you’ve been hoping for big changes in lending rules or a streamlined approach to first home buyer initiatives, this Budget might feel a little underwhelming.

A mix of cost-of-living relief and housing affordability measures

The Government appears to be juggling three main objectives: reducing cost-of-living pressures, maintaining growth, and improving housing affordability. It’s why we’re seeing a small drop in the lowest marginal tax rate, set to move from 16% to 15% in July 2026, and then down to 14% from July 2027. These are modest cuts, but they might help some borrowers who are tight on serviceability.

Meanwhile, households and small businesses will continue receiving quarterly energy rebates. These rebates won’t solve housing affordability on their own, however they could free up some funds that might go towards mortgage repayments instead of utility bills. For brokers, these shifts could mean incremental improvements for buyers on tighter budgets. A slight lift in a client’s disposable income might give them more confidence to consider a new loan or refinance an existing one.

Homebuyer initiatives: Extensions but no consolidation

The Government is extending or expanding several existing schemes rather than merging them into a single plan. The main one catching attention is the “Help to Buy” shared-equity scheme, where higher property price and income caps mean more buyers could now qualify. If you’ve had clients who couldn’t pull together a big enough deposit, this change might provide an opportunity to get into the market. However, the scheme is limited to 40,000 applicants over four years .

It’s good news for some first home buyers, but it still doesn’t address the complexity around multiple federal and state-based programs. You might find yourself explaining a range of overlapping options, each with its own rules, eligibility criteria, and benefits. Being that trusted guide could really set you apart in this environment. When you clarify what a shared-equity arrangement means for long-term ownership, or how it compares to other assistance programs, you could gain your clients’ trust—and possibly their business.

Stalled hopes for easier refinancing

The Mortgage & Finance Association of Australia (MFAA) has been calling for more relaxed serviceability buffers and simplified loan discharge processes to encourage competition in refinancing. Neither recommendation made it into this Budget. APRA’s lending benchmarks remain the same, so certain borrowers might feel stuck in higher-rate loans. Meanwhile, the Government’s digital transformation plans haven’t yet produced faster discharge procedures, so we may not see immediate improvements in turnaround times.

To stay ahead, it is always worth contacting clients before their fixed interest rates end. Even if they can’t switch lenders right away, they may appreciate early guidance and insights on how those buffers or discharge timelines might affect them.

Support for small businesses—including brokers

Many mortgage brokers run small businesses, so you may be interested in some of the broader measures. The Government is continuing its investment in digital and cybersecurity programs like Digital Solutions and Cyber Wardens, aimed at helping smaller operators protect data and streamline processes. There are also energy efficiency grants that could help with upgrading older equipment in your office. That might sound minor, but anything that keeps overheads in check could open the door to more client-focused initiatives or even just reduce the stress of day-to-day expenses.

Unmet industry calls and practical actions

MFAA CEO Anja Pannek broadly welcomed the budget’s focus on housing and FBAA Managing Director, Peter White praised efforts to boost housing affordability. Several MFAA requests were not addressed by the Budget, including a single, unified framework for first home buyers and serviceability buffer reductions. There’s also no direct mechanism for green mortgages or energy-efficient home upgrades that involve brokers. Still, there are practical moves you could make:

• Stay on top of scheme details: Reviewing new property price caps and eligibility criteria means you can give straightforward answers when clients are unsure.
• Emphasise your advisory role: Explaining the differences between each homebuyer program remains an important value-add.
• Focus on cyber resilience: Funding support is available to keep your clients’ personal details secure—a big selling point for peace of mind.
• Keep close with lenders: Knowing who offers the most competitive rates or the easiest discharge timelines may reduce client frustration.

Final thoughts

Overall, the 2025–26 Federal Budget delivers incremental boosts for homebuyers—particularly those dipping a toe into the market for the first time—but isn’t the game-changer many brokers had hoped for. We still see the same challenges around refinancing and loan discharge, though small advantages like a slight tax cut or extended rebate might help borrowers who are on the fence.

Please note, we do not provide tax, legal or accounting advice. This article has been written for general informational purposes only as at the date noted, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. We encourage you to consult your own tax, legal and accounting advisers before engaging in any transaction.