First Home Buyer Lending Rises as Scheme Goes Unlimited
First home buyer loan commitments rose 6.8% in the December 2025 quarter, according to ABS Lending Indicators released in February 2026 — the most recent data available. The uplift comes as the federal Home Guarantee Scheme enters a new era with the removal of annual place quotas and income caps.
The Scheme Is Now Unlimited
From October 1, 2025, the Home Guarantee Scheme no longer has annual place limits. All eligible first home buyers with a 5% deposit can apply without competing for a capped allocation. Income thresholds have also been removed entirely — previously capped at $125,000 for individuals and $200,000 for couples.
This is the most significant structural change to the scheme since its inception and is expected to drive measurably higher uptake through 2026.
State-Level Support
- Queensland: First Home Owner Grant of $30,000 for new builds under $750,000 (contracts signed before June 30, 2026, after which it reverts to $15,000)
- Victoria: Stamp duty waived for new builds under $750,000; 50% reduction for established homes under $600,000
- NSW: Shared equity scheme extended to key workers in high-cost local government areas
Where First Home Buyers Are Active
ABS data shows first home buyer activity concentrated in outer-metro corridors where median prices remain under $650,000:
- Melbourne’s outer west (Melton, Wyndham Vale, Werribee): $520,000–$640,000
- Brisbane’s Logan and Ipswich corridors: $550,000–$680,000
- Perth’s northern and southern corridors: $490,000–$610,000
- Adelaide’s northern suburbs (Salisbury, Elizabeth): $380,000–$450,000
Rate Headwind
The RBA’s February and March 2026 hikes have reduced borrowing capacity by approximately $60,000–$80,000 for a typical first home buyer relative to mid-2025. Financial counsellors advise buyers entering with a 5% deposit to stress-test repayments at rates 1–1.5% above their current variable rate.
Average Loan Size
The average first home buyer mortgage rose 8.5% to $607,624 in the December 2025 quarter, reflecting sustained price growth in accessible corridors despite broader affordability pressures.
