Significant Rise in First-Home Buyer Guarantees Reflects Market Demand

Understanding the Implications of Increased First-Home Buyer Activity

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.

Recent government data indicates a substantial 48% increase in first-home buyer guarantees, with 5,778 guarantees issued in October 2025 compared to the previous year.

This surge suggests a growing confidence among first-time buyers, despite ongoing affordability challenges.

Several factors contribute to this trend. The expansion of the 5% Deposit Scheme has made homeownership more accessible, allowing buyers to enter the market with a smaller initial deposit. Additionally, the average budget for first-home buyers has risen to $637,000 in 2025, up from $599,000 in 2024, reflecting an adaptation to the current market conditions.

However, saving for a deposit remains a significant hurdle. The increased demand has intensified competition, particularly in entry-level property segments, leading to higher prices and making it more challenging for first-time buyers to secure desired properties.

For prospective buyers, it's crucial to stay informed about available government schemes and to seek professional financial advice to navigate the complexities of the current housing market.

Published:Friday, 9th Jan 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. First Home Buyer publishes general educational information, tools and resources about first home buying and home loans in Australia.

IMPORTANT: This website provides general information, tools and resources only. The information does not take into account your objectives, financial situation or needs and is not personalised financial, credit or insurance advice. We do not accept applications, quote requests or borrowing enquiries, assess personal eligibility, refer or match visitors to providers, or recommend or arrange products for individuals. Consider seeking advice from an appropriately licensed professional before acting on the information. You should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.