Surge in First-Home Buyer Loans Post Home Guarantee Scheme Expansion

Analysing the 15.5% Increase and Its Market Implications

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The Australian Bureau of Statistics (ABS) has reported a significant increase in first-home buyer lending following the expansion of the Home Guarantee Scheme.

In the December 2025 quarter, the value of new loans to first-home buyers rose by 15.5%, reaching $19.3 billion.

This marks the second-highest quarterly total on record, surpassed only by figures from March 2021.

The number of first-home buyer loans also increased by 6.8% compared to the previous quarter, indicating a robust response to the scheme's expansion. This surge reflects the scheme's effectiveness in facilitating homeownership for first-time buyers by reducing the initial deposit requirement and eliminating the need for lenders' mortgage insurance.

However, this increased demand has also contributed to heightened competition in the housing market, particularly in the entry-level segment. Prospective buyers should be prepared for a competitive environment and consider various strategies to enhance their purchasing prospects, such as obtaining pre-approval for loans, exploring different property options, and staying informed about market trends.

While the scheme has provided valuable assistance to first-home buyers, it's essential to balance the benefits of reduced entry barriers with the responsibilities of managing larger loan amounts and navigating a competitive market landscape.

Published:Friday, 1st May 2026
Author: Paige Estritori

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