Property markets move quickly — figures below are a point-in-time snapshot (Q2 2026) and may have moved since publication. Always check the original source linked at the bottom of this report for the latest figures.

Lending activity

  • Total new home loan commitments fell 6.2% by number in the March 2026 quarter (to 139,794 loans) as three RBA cash rate rises and tighter macroprudential settings took effect — though activity remains 8.6% higher than a year earlier.
  • Owner-occupier first home buyer loan commitments fell 4.3% by number and 6.7% by value over the same quarter — the sharpest pullback of any borrower segment, reflecting how exposed this group is to rate and serviceability changes.
  • The average national home loan size is now $724,415 (+9.0% year-on-year); first home buyers typically borrow less, averaging around $614,000.
  • Victoria has the highest share of first home buyer lending activity of any state, partly attributed to Melbourne's relative affordability and state tax settings that have discouraged investors.

Government support currently available

  • The First Home Guarantee lets eligible buyers purchase with a 5% deposit and no LMI; since October 2025 the scheme has no cap on annual places and, for most buyers, no income cap.
  • The First Home Super Saver Scheme lets buyers save a deposit inside superannuation at concessional tax rates.
  • State-based stamp duty concessions and First Home Owner Grants remain available in every state — see our Stamp Duty Calculator for a state-by-state breakdown.

The affordability backdrop

On PropTrack's Housing Affordability Report, only around 14% of median-income households nationally (10% in Sydney) can now afford to buy the median-priced home in their city — down sharply from around 43% five years ago. It now takes the average Australian buyer roughly 11 years to save a 20% deposit at typical savings rates, which is the core reason government deposit schemes have become central to how most first home buyers now enter the market.

Sources

  • ABS Lending Indicators
  • Housing Australia (First Home Guarantee)
  • PropTrack Housing Affordability Report

Related: How to Save a Deposit · Buying Your First Home