First Home Buyers • Affordability • Government Support
Home ownership feels further away — but the 5% Deposit Scheme is quietly getting people in sooner
A growing number of Australians are stepping back from buying, with more people shifting from “not yet” to “never”. And when the headlines are full of rate hikes and higher repayments, it’s easy to see why confidence takes a hit. But here’s the other side of the story: low-deposit entry has become more mainstream than most buyers realise — and the 5% Deposit Scheme has now supported more than 300,000 Australians into a home.
Why so many people feel they can’t buy anymore
Agile Market Intelligence’s Consumer Pulse survey of non-home owners shows sentiment has softened sharply. It found that 40% of Australians who don’t yet own a home reported they have no plans to buy at all — up 3 percentage points from last quarter and 10 points since March 2025. :contentReference[oaicite:2]{index=2}
At the same time, only 13% said they plan to purchase within the next 12 months (down from 15% in the December quarter). :contentReference[oaicite:3]{index=3} Yet aspiration hasn’t disappeared — 46% still want to buy, but say they’re not financially ready or that rates and prices feel astronomical. :contentReference[oaicite:4]{index=4}
Key insight: “Never” often means “not with the deposit and plan I have right now”. When the strategy changes, the outcome can change too.
The generational split: younger buyers still want in, older renters are giving up
The same survey points to an age divide. Among non-home owners aged 35–54, the share who said they had abandoned buying jumped to 40% (up 7% from the previous reading). For those aged 55+, the “no plans to purchase” figure climbed to 74%. :contentReference[oaicite:5]{index=5}
Younger Australians remain the most active cohort, with 19% of 18–34s planning to buy within 12 months — but even that is down quarter on quarter. :contentReference[oaicite:6]{index=6}
In Victoria specifically, the survey reported 16% planning to buy this year (down 4%), while 34% now reported no plans to purchase (up 2 points). :contentReference[oaicite:7]{index=7}
The comfort piece: low-deposit entry is more mainstream than most people think
Here’s the part that often gets missed in the doom-and-gloom cycle: Housing Australia has confirmed that more than 300,000 Australians have now bought or built a home with support from the 5% Deposit Scheme. :contentReference[oaicite:8]{index=8} What started as a limited program in 2020 has evolved into a mainstream feature of the mortgage market. :contentReference[oaicite:9]{index=9}
- Almost 60,000 essential workers have used the scheme. :contentReference[oaicite:10]{index=10}
- Over 99,000 participants are in regional Australia. :contentReference[oaicite:11]{index=11}
- Around half of participants are under 30, and women make up roughly half of all participants. :contentReference[oaicite:12]{index=12}
- Eligibility has expanded over time (including permanent residents and broader joint borrower options). :contentReference[oaicite:13]{index=13}
What this means for first home buyers: if the deposit is the main barrier, you may not need to wait for years to hit 20%. The right low-deposit pathway can get you moving sooner — with a plan that still protects your budget.
So… is it actually “easier” to get in than before?
In one key way, yes: low-deposit lending has surged. APRA’s December-quarter property exposure statistics showed banks approved a record wave of owner-occupier loans with deposits of 5% or less — $5.4 billion in the three months to December, up $2.1 billion (63%) on the previous quarter. :contentReference[oaicite:14]{index=14}
Equifax’s mortgage research also found first home buyer intent strengthened again in February 2026, with inquiries up year on year for both 18–25 and 26–35 cohorts — despite the cash rate rising to 3.85% that month. :contentReference[oaicite:15]{index=15}
Important balance: support schemes can help people buy sooner, but they don’t magically fix affordability. That’s why we focus on borrowing power, buffers, and a repayment plan you can live with.
If you’re a first home buyer feeling stuck, here’s the practical plan
The goal isn’t to time the market perfectly. It’s to get clarity on your real options, then move with confidence.
3 steps that change everything
- Borrowing power check: don’t assume your current bank is the best measure of what you can do.
- Deposit pathway check: see whether the 5% Deposit Scheme fits your scenario. :contentReference[oaicite:16]{index=16}
- Budget + buffer plan: stress test repayments and keep a cash buffer (even a small one) to stay comfortable.
If you’re in Victoria, we can also talk through realistic purchase ranges and a strategy to stay competitive without stretching yourself too far.
Want to know if you can buy with 5% (and what your numbers look like)?
If you’d like, we can run a quick first home buyer check: borrowing power, deposit options, and what lenders will likely do with your scenario — then map a simple plan to move from “stuck” to “sorted”.
Note: This is general information only and doesn’t consider your personal objectives, financial situation, or needs.