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

Analyzing the Impact of Rising Costs on First-Time Homeownership

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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.

The report also reveals that 14% of recent buyers have exhausted their savings, while 33% have less than $10,000 remaining post-purchase. Notably, 18% of first-time buyers exceeded their budgets by $50,000, potentially adding over $3,500 to annual loan repayments on a $500,000 mortgage.

These findings highlight the importance of thorough financial planning and budgeting for prospective buyers. It's advisable to account for potential market fluctuations and additional costs to avoid financial strain post-purchase.

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

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Knowledgebase

Collateral:
An asset that a borrower offers as a way for a lender to secure the loan.

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