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First-Home Buyers Navigate Record-Low Affordability to Achieve Homeownership
Strategies and Support Systems Empowering New Entrants in a Challenging Market
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The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Australia's housing affordability has reached unprecedented lows, with typical first-home buying households able to afford only 17% of properties sold last year.
This stark reality is primarily due to the surge in mortgage rates between 2022 and 2023, which has significantly impacted purchasing power.
Despite these challenges, first-home buyers are demonstrating resilience and adaptability. Many are utilizing government initiatives like the Home Guarantee Scheme, which allows purchases with a 5% deposit and waives Lenders Mortgage Insurance. Additionally, buyers are exploring more affordable property types, such as apartments and townhouses, and considering locations outside major metropolitan areas to stretch their budgets further.
Financial planning has become more critical than ever. Prospective buyers are advised to assess their financial health, set realistic budgets, and explore all available support systems. Engaging with financial advisors and mortgage brokers can provide personalized strategies to navigate the current market conditions.
While the path to homeownership is fraught with obstacles, the determination of first-home buyers, coupled with strategic planning and support, continues to drive their participation in the market.
Published:Tuesday, 3rd Feb 2026 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
Australia's housing affordability has reached unprecedented lows, with typical first-home buying households able to afford only 17% of properties sold last year. This stark reality is primarily due to the surge in mortgage rates between 2022 and 2023, which has significantly impacted purchasing power. - read more
In October 2025, the Australian housing market witnessed a significant uptick in first-home buyer activity, with 5,778 guarantees issued under the expanded 5% Deposit Scheme. This marks a 48% increase compared to the same period in the previous year, indicating a robust response to the government's initiative aimed at facilitating homeownership for first-time buyers. - read more
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