As Australia’s leading destination for furniture, homewares and renovations, Temple & Webster has a genuine interest in understanding how Australians live and the financial realities shaping their homes. As new homeowners enter the market under evolving government programs, understanding their economic landscape allows us to better support them through every stage of their housing journey. In this study, we examine the impact of the Australian Government’s 5% Deposit Scheme, analysing how expanded access to homeownership is reshaping first home buyer debt, monthly budgets and long-term purchasing power. 
 

First home buyer loans jumped $49,800 in the nine months after the 5% deposit scheme opened, the largest quarterly rise in a 24-year dataset.

• First home buyer lending grew 3.3% in the 12 months to June 2026, outpacing the rest of the market at 1.9% for the first time since September 2024
• Average first home buyer loan reached $610,063 in June 2026, up 8.9% since the scheme opened on 1 October 2025
• The December quarter saw average first home buyer loans rise 8.5%, the single largest quarterly jump since the series began in September 2002
• Seasonally adjusted first home buyer loan numbers fell 2.3% on the pre-scheme quarter and remain 39.9% below the June 2009 peak of 50,097 loans
• The extra $49,800 in average loan size translates to $587 additional monthly repayments over 30 years
• Interest rate rises since October 2025 have already eroded over one-third of the scheme's upfront $96,000 benefit
• Of the $49,800 loan increase, approximately half matches broader market growth, with the other half unexplained by market conditions alone
• Seven of eight Australian states show first home buyers taking larger loans independent of local market conditions, with Western Australia recording the largest increase at 16.0% despite falling buyer numbers
• The scheme removes lenders mortgage insurance and income caps for first home buyers with a 5% deposit, opening eligibility to all such applicants from 1 October 2025
  

What it means

First home buyers have regained ground relative to the broader market, but at the cost of materially higher debt. The $49,800 average loan increase represents a structural shift in market participation: buyers are not simply entering in greater numbers, they are entering with substantially larger mortgages. For new homeowners, this means redirecting nearly $600 monthly from discretionary spending into housing debt for three decades. The erosion of scheme benefits through rate rises signals that timing and market conditions now carry greater weight in determining the true cost of entry, and that buyers who lack deposit savings face genuine budget pressure where peers with accumulated cash can absorb the extra servicing cost.

For new homeowners, stepping onto the property ladder is a major milestone, but navigating larger loan balances alongside shifting interest rates creates real budget pressures that ripple into how people establish and furnish their spaces. At Temple & Webster, tracking these housing trends ensures we stay deeply connected to our customers' evolving needs, helping Australians make thoughtful, flexible choices for their living spaces, no matter how the broader market shifts.