What the New $1 Million Lending Change Means for Brisbane and Gold Coast Property Owners
At a Glance
Lender’s Mortgage insurance (LMI) removed for first home buyers purchasing up to $1 million, creating savings of around $30,000 to $35,000. First home buyers can now buy with as little as 5% deposit.
Buyer activity increasing across Brisbane, Gold Coast and Northern NSW, especially in the $700,000 to $1 million range.
Recent interest rate cuts and low stock levels are driving faster sales and stronger offers.
First home buyers are stretching into higher value segments (up to around the $1 million mark), adding dynamic competition..
Upsizers and interstate investors are targeting South East Queensland for lifestyle and growth.
Sellers are seeing renewed competition and shorter time on market this summer.
Together, these shifts are creating one of the most active and opportunity-rich property markets South East Queensland has seen in years.
New Lending Rules Boost Property Activity
If you own a home in Brisbane, Gold Coast or Northern NSW, there’s major news that could directly impact your property’s value and it’s already shifting buyer behaviour.
The Federal Government has recently introduced a new scheme removing a need for lender’s mortgage insurance (LMI) for first home buyers, who have less than 20% deposit and would like to purchase properties for up to $1 million. That’s an immediate saving of around $30,000 to $35,000, giving first home buyers more power to compete, especially in tightly held, high-value suburbs.
At NSRE, we’re already seeing this policy flow through the market with faster decision-making and stronger offers from entry-level buyers who now have extra capacity to move.
Across Brisbane, Gold Coast and Northern NSW, strong buyer activity and low stock levels are creating rapid sales in every category.
What’s Happening on the Ground
In the past month, lending approvals for homes priced between $700,000 and $1 million have increased sharply, particularly across Brisbane’s inner suburbs, Gold Coast lifestyle precincts and Northern NSW coastal towns.
The new policy, combined with interest rate cuts, is creating one of the most active markets in recent years in this price segment.
Current market trends:
Buyer confidence is rising. More finance approvals are translating into serious offers.
Competition is intensifying. Low stock levels and a surge in qualified buyers are driving urgency.
Sales are faster. Days on market have dropped by up to 20% in key lifestyle suburbs.
Upsizers and investors are active. Buyers relocating from Sydney and Melbourne are targeting South East Queensland for relative value and strong growth potential.
Now is the time to review your property strategy and understand how these market shifts could influence your home’s value.
Why This Matters for Homeowners and Sellers
This policy change expands the pool of qualified buyers competing for mid-to-high-value homes. Properties that were just out of reach for first home buyers are now attainable.
For current owners, this means:
More competitive offers for properties under $1 million
Shorter negotiation timelines as buyers make offers with finance pre-approved
Price uplift in suburbs where supply remains tight
If you’ve been waiting for the right time to sell, this may be the most balanced seller environment we’ve seen since 2021.
How NSRE Helps You Capitalise
Our team is already working with motivated buyers who are taking advantage of these new conditions and sellers who want to make the most of the current momentum.
For Sellers:
We position your property strategically to attract qualified buyers in this new lending landscape.
For Buyers:
Our Buyer’s Advocacy service gives you early access to off-market and pre-market listings, which is essential when demand is this strong.
Whether buying or selling, this is a time to act with strategy, not hesitation.
Book Your Buyer’s Advocacy Session →
Quick Insights: Brisbane, Gold Coast and Northern NSW
Brisbane: Strong activity in Northern suburbs with more first home buyers entering the $900,000 to $1.2 million range.
Gold Coast: Increased movement in Mermaid Waters, Broadbeach and Burleigh Heads where borrowing capacity has lifted interest under $1.5 million.
Northern NSW: Steady enquiry in Lennox Head and Kingscliff from buyers seeking lifestyle upgrades.
Time to Review Your Property Strategy
Government policy, lower interest rates and spring demand are aligning in a way that creates real opportunity. For homeowners, that means it could be the right moment to review your property’s position.
Curious what your home could be worth in today’s climate?
Book your complimentary Equity Review with NSRE and discover how this surge in buyer activity could work to your advantage.
Brisbane Property Market in Full Swing
Homes across all price ranges are moving fast as confidence, rate cuts and new lending rules drive one of the most active markets in years.
Frequently Asked Questions
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From 1 October 2025, the Federal Government’s Home Guarantee Scheme expanded significantly. Property price caps have increased, income limits have been lifted and the quota on the number of places has been removed. In Queensland, eligible buyers can now purchase homes up to $1 million without paying lenders’ mortgage insurance (LMI) if they meet scheme conditions.
For sellers, this means more qualified buyers entering the market, particularly in the mid price range. It’s a boost in demand, but not an automatic price rise, presentation, pricing and location still matter. -
Not for everyone. Mortgage insurance is avoided only for buyers who qualify under the government’s Home Guarantee Scheme. Those who do not meet the criteria will still need to pay LMI as normal.
In practice, this policy removes one of the biggest upfront barriers for first home buyers, giving many the financial capacity to enter the market sooner. -
The change is driving more activity, especially in value ranges between $800,000 and $1.5 million, where first home buyers and upsizers overlap. However, not every property will benefit equally.
Homes in good condition, desirable locations, and realistic price brackets are seeing the fastest results. Local supply remains the key factor determining how quickly a home sells. -
On a $1 million property, eligible first home buyers could save around $30,000 to $35,000 by avoiding LMI. This figure varies depending on loan size and deposit, but it is a meaningful advantage that strengthens buyer budgets and increases competition for quality homes.
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Yes. Recent interest rate cuts have increased borrowing capacity and buyer confidence, while stock levels remain tight in many parts of Brisbane, Gold Coast and Northern NSW.
The combination of limited supply and renewed demand is creating competitive conditions, especially in lifestyle suburbs and family-friendly areas. -
While the scheme directly assists first home buyers, the flow-on effects benefit the wider market. Increased activity at entry levels encourages movement across the property chain, from upsizers to investors, helping maintain momentum in higher-value brackets as well.
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Homes priced just under or around $1 million are most likely to see a direct effect. This is where the government’s new cap aligns with strong buyer demand.
Properties well above that range may experience an indirect benefit from overall market confidence and increased sales volume. -
Focus on presentation, realistic pricing and timing. With demand rising and stock still limited, professionally marketed homes that are well-prepared for sale are achieving multiple offers and faster contracts.
Partnering with an agent who understands market dynamics, including off-market opportunities and negotiation strategy, is essential. -
Yes. If supply increases sharply or interest rates rise again, buyer momentum could ease.
This policy may lift demand in certain brackets but will not shield all homes from broader economic shifts. The best approach is to act strategically while market conditions remain aligned in sellers’ favour. -
While first home buyer incentives target lower price points, overall market confidence supports the entire ecosystem. When entry-level segments move, prestige markets often follow with renewed energy and liquidity.
For high-end properties, the opportunity lies in timing, professional positioning, and connecting with serious, finance-ready buyers, which NSRE’s tailored marketing and Buyer’s Advocacy services are designed to deliver.
Disclaimer: This information is provided for general guidance only. Property investment involves risk and past performance does not guarantee future results. We recommend consulting with qualified advisors before making investment decisions.