Welcome back! Home lending jumps as first home buyers return

Here’s some warming news for winter – first home buyers are making a welcome return to the property market. Several factors suggest the stars may have aligned to make now a good time to take that first step on the property ladder.

Growing numbers of first home buyers are entering the housing market, with NAB reporting lending to first home buyers has climbed 16% since February.

It’s a big jump, and while the figures are based on data from just one lender, there are several good reasons why first home buyers are heading back to the market.

To begin with, consumer sentiment is rising as cost-of-living pressures start to ease.

There is also more confidence about ongoing interest rate relief: two-thirds of Australians expect home loan rates to be the same or even lower in a year’s time.

Plenty of the big banks agree. Westpac, for instance, expects two more rate cuts this year, with more to follow in 2026.

But there are other reasons why the time may be right for many first home buyers.

Home prices expected to rise

This month saw the Westpac–Melbourne Institute Index of House Price Expectations surge to its highest level since 2013.

Put simply, more than three-quarters of consumers expect property prices to rise over the next 12 months.

These expectations may not be far off the mark.

CoreLogic reports that while home price growth has slowed overall, the rise in housing values is being led by the lower-priced sections of the market – which tend to be first home buyer territory.

The upshot is that if you’re home loan-ready, buying a place of your own today might mean paying less than if you hold off for a few months.

Help available for first home buyers

Housing affordability can still be a challenge for many first home buyers.

The good news is that first home buyers can tap into a wide range of support to help buy a place of their own.

Various states have schemes to help first home buyers, including stamp duty exemptions/concessions or first home buyer grants.

These can really help give you a leg up, so talk to us to know what’s available in your area.

If you’re struggling to grow a deposit, ask us about the Home Guarantee Scheme. It enables first home buyers to purchase with just a 5% deposit without having to pay Lenders Mortgage Insurance.

Listings are up

Winter can be a quiet season for property, but not this year.

According to CoreLogic, May saw a rebound in newly listed homes, with over 35,000 properties coming onto the market for sale in the four weeks to 1 June 2025.

This is giving first home buyers even more choice.

It could be your opportunity to find the property that is right for your needs and budget.

Have the stars aligned for you?

With so many potential upsides to take advantage of, it’s worth having a chat with us to know if you are in a position to buy your first home.

Get in touch and we’ll help you assess your borrowing power and let you know if there are any first home buyer schemes you may be eligible for to help you buy sooner.

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