The Federal Budget 2026 is in and it includes changes that could directly affect your next property move. Whether you're buying your first home, growing an investment portfolio, or paying off an existing mortgage, there are a few key updates worth knowing.
At Mortgage Achievers, we've pulled out what matters most so you can understand how the Budget may affect your borrowing power, property plans and financial goals.
The Key Announcements
Here's what landed in the Federal Budget 2026 that's relevant to property and home loans:
- Help to Buy expanded. The Government's shared equity scheme, which can contribute up to 40% of the purchase price for a new home and up to 30% for an existing home, now has higher income caps, allowing more Australians to qualify.
- FHSSS limits raised. First home buyers can now withdraw more eligible voluntary super contributions under the First Home Super Saver Scheme.
- $2 billion for housing supply. Additional funding has been allocated to social and affordable housing, with a focus on increasing housing availability over the coming years.
- Tax relief continues. Ongoing tax cuts and cost of living measures are designed to leave more money in household budgets.
- Proposed changes to negative gearing and CGT. The Government announced reforms that may affect future investment property purchases. Existing investors are expected to be largely protected through grandfathering provisions, while the proposed changes remain subject to legislation.
- Infrastructure spending. Major funding commitments have been made for transport and community infrastructure in growth areas including outer Melbourne and South East Queensland.
- Build to rent incentives. Additional tax concessions have been introduced to encourage large scale rental developments and increase housing supply.
First Home Buyers: What's Changed?
Three updates stand out for first home buyers.
1. Help to Buy reaches more Australians
Income caps have increased, meaning more buyers may now qualify for the shared equity scheme.
Under the program, the Government contributes part of the purchase price, reducing the size of your deposit and mortgage. You remain the homeowner and repay the Government's share when you sell or choose to buy it back.
If you previously missed out, it may be worth checking your eligibility again.
2. You can access more through the FHSSS
The increase to First Home Super Saver Scheme withdrawal limits means buyers who have been making voluntary super contributions may have a larger deposit available.
For many first home buyers, this can significantly reduce the time needed to save.
3. Your borrowing power may have improved
Tax relief and cost of living measures can improve household cash flow. While every lender assesses borrowers differently, improved disposable income may strengthen your borrowing position.
The key takeaway is that these opportunities can often be combined. Help to Buy, the FHSSS, state government incentives, stamp duty concessions and the right lending strategy may help buyers achieve home ownership sooner than expected.
A mortgage broker can help identify which options are available and how they work together.
Read more about First Home Buyer Loans here.
Property Investors: A Changing Landscape
The biggest property related announcement for investors was the proposed reform to negative gearing and capital gains tax.
Under the proposed changes, investors purchasing established residential properties after Budget night may face restrictions on negative gearing from 1 July 2027. New residential properties are expected to retain access to favourable tax treatment as part of the Government's focus on increasing housing supply.
For existing investors, current arrangements are expected to continue through grandfathering provisions, meaning properties already owned are unlikely to be affected.
Importantly, these reforms are proposed measures and remain subject to legislation.
Beyond the tax changes, there are two other areas worth watching:
- Infrastructure corridors. Government spending on roads, rail and essential services in growth areas may support future population growth and housing demand.
- Build to rent developments. Additional incentives may encourage new rental housing supply and create opportunities in certain markets.
If you're considering an investment purchase, it's worth reviewing your strategy and understanding how the proposed changes could affect your plans.
Read more about Investors | Mortgage Achievers Pty Ltd here.
Already Have a Mortgage? Read This
Even if you're not planning to buy or invest, the Budget may still be relevant.
Changes that improve household cash flow can strengthen your financial position and may influence future borrowing opportunities, refinancing options or access to equity.
The Budget itself does not determine interest rates. Those decisions remain the responsibility of the Reserve Bank of Australia. However, economists will continue to assess how Budget measures may influence inflation and the broader interest rate outlook.
If you haven't reviewed your home loan in the past 12 months, now could be a good time to compare your options.
Lender competition remains strong and there may be opportunities to reduce repayments, access better features or restructure existing debt.
Read more about Refinancing | Mortgage Achievers Pty Ltd here.
What Should You Do Now?
- First home buyers: Review which government schemes and incentives you may qualify for.
- Investors: Understand how the proposed tax changes may affect future investment decisions and financing options.
- Existing borrowers: Consider a home loan review to ensure your current loan still meets your needs.
Ready to Turn Budget News Into Action?
At Mortgage Achievers, we've spent over 30 years helping Australians navigate changing market conditions and lending environments.
With offices in Melbourne and Brisbane, access to more than 30 lenders and a team with decades of combined experience, we're here to help you make informed decisions.
✓ Book a consultation and discuss how the Budget may affect your plans.
✓ Get a borrowing capacity assessment and understand your options.
✓ Compare a wide range of lenders and loan products.
Contact Mortgage Achievers today.
Frequently Asked Questions
Does the 2026 Budget make it easier to buy a first home?
Potentially, yes. The expansion of Help to Buy, increased FHSSS withdrawal limits and ongoing cost of living support may improve affordability for some buyers. The impact will depend on your individual circumstances.
Will the Budget change interest rates?
Not directly. Interest rates are set by the Reserve Bank of Australia. However, economists and financial markets will consider how Budget measures may affect inflation and future rate decisions.
What does the Budget mean for property investors?
The Budget included proposed changes to negative gearing and capital gains tax for future investment property purchases. Existing investors are expected to be largely protected through grandfathering provisions, while new residential developments may continue to receive favourable tax treatment. As these measures are not yet law, investors should seek professional advice relevant to their circumstances.
Your Next Step
The Federal Budget creates opportunities, but understanding how those opportunities apply to your situation is what matters most.
Whether you're buying your first home, investing or reviewing your existing mortgage, personalised advice can help you make informed decisions with confidence.
Speak with the team at Mortgage Achievers to discuss your options and create a strategy tailored to your goals.
Disclaimer - The information contained in this article is general in nature and is provided for informational purposes only. It does not take into account your personal objectives, financial situation or needs and should not be relied upon as financial, taxation, legal or investment advice. While every effort has been made to ensure the information is accurate at the time of publication, government policies, legislation, lending policies and market conditions may change without notice. References to proposed Federal Budget measures are based on announcements made at the time of writing and may be subject to the passage of legislation, amendments or future government decisions. Before making any financial, property or investment decisions, you should seek advice from a qualified financial adviser, accountant, tax adviser or legal professional who can consider your individual circumstances. Mortgage Achievers Pty Ltd and its representatives accept no liability for any loss or damage arising from reliance on the information contained in this article.