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
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Significant Rise in First-Home Buyer Guarantees Reflects Market Demand

09 Jan 2026: Paige Estritori

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. - read more

Escalating Property Prices Lead to Financial Challenges for First-Home Buyers

09 Jan 2026: Paige Estritori

According to Finder's First Home Buyer Report 2025, nearly half (47%) of first-time home buyers spent more than they had initially budgeted, a significant increase from 38% in 2022. This trend underscores the mounting financial pressure on new homeowners as property prices continue to rise. - read more

Interest Rate Cuts Drive First-Home Buyers Towards New Builds

09 Jan 2026: Paige Estritori

The Reserve Bank's recent rate cuts, bringing the cash rate down to 3.85%, have provided relief to mortgage holders and increased borrowing capacity for home seekers. This development has led to a notable shift among first-home buyers towards new builds as a strategy to navigate the competitive property market. - read more

Surge in First-Time Buyer Activity Following First Home Guarantee Expansion

01 Jan 2026: Paige Estritori

The Australian housing market has witnessed a significant uptick in first-time buyer activity, largely attributed to the recent expansion of the First Home Guarantee (FHG) scheme. This government initiative, designed to assist eligible buyers in entering the property market with minimal deposits, has seen a 39.2% increase in applications since its October expansion, marking the highest level of first-home buyer engagement in years. - read more

Click for more Finance News

Home Loan Articles

Your First Home: Steps to Saving for a Deposit

In today's rapidly evolving Australian housing market, many prospective homebuyers find themselves confronted with a daunting challenge. Home prices have been on the rise, particularly in major cities like Sydney and Melbourne, creating a competitive environment for those looking to secure their first property. This situation can seem overwhelming, but with careful planning and strategic saving, prospective homeowners can successfully navigate this landscape. - read more

Why Your Credit Score Matters When Buying Your First Home

Buying your first home is an exciting and significant milestone in life, especially for young Australians. The journey from dreaming about home ownership to holding those keys can feel both thrilling and daunting. With property prices fluctuating and the market offering numerous opportunities, understanding the dynamics of purchasing a home in today's Australian housing market is crucial. - read more

Knowledgebase

Mortgagor:
A person who offers to assign an asset as security (e.g. real estate) under a mortgage loan contract. The lender (mortgagee) holds the legal ownership of the security until the loan is repaid and the mortgage is discharged.

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. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.