![\"Value](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/Value-of-first-home-buyer-mortgages.png\")
<\/p>\nThe recent housing finance data from the Australian Bureau of Statistics (ABS) revealed that over the December quarter of 2025, $19.310 billion in mortgages was lent to first-home buyers. This was an increase of 16% over the prior quarter and the highest value since the first quarter of 2021:<\/p>\n
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The average size of first-home buyer mortgages also surged by a record 8.3% in the December quarter of 2025 to a record high of $607,500:<\/p>\n
![\"Value](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/First-home-buyer-mortgage-increase.png\")
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Chart by Greg Jericho (The Guardian)<\/p>\n
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It has been revealed<\/a> that 22,921 guarantees were issued under the federal government\u2019s 5% mortgage deposit scheme for first-home buyers in the four months since it underwent a major expansion on 1 October 2025.<\/p>\n This represents a 75% rise compared to the previous four-month period between June and September, in which 13,105 guarantees were issued.<\/p>\n Almost two-thirds of properties purchased under the scheme in the four months since October were houses, while under-30s make up two-fifths of those who have benefited from the scheme in that time.<\/p>\n Advertisement<\/p>\n AMP deputy chief economist Diana Mousina told The ABC that the figures from the past four months represented a \u201cmassive jump\u201d.<\/p>\n \u201cWe know that incentives really matter in the housing market\u201d, she said.\u00a0\u201cWhenever we get some sort of grants or discounts, we always see a big take-up of these things\u201d.<\/p>\n The demographic breakdown shows the scheme is being used mostly by groups already relatively advantaged, namely:<\/p>\n Advertisement<\/p>\n Under\u201130s make up 40% of participants. Regional buyers account for almost 30% (10,700 people). Houses (not units) make up nearly two\u2011thirds of purchases. Key workers represent 18%. Single parents have a relatively low uptake. <\/p>\n \u201cI don\u2019t think this scheme is good overall because it\u2019s just another demand-side policy, which increases prices over the long term\u2014that\u2019s fundamentally the flaw with it\u201d, Mousina said.<\/p>\n \u201cWe haven\u2019t seen a commensurate increase in supply. We have more people wanting to get into the market but supply hasn\u2019t really moved in line with demand\u201d.<\/p>\n Advertisement<\/p>\n \u201cThat\u2019s why it\u2019s just going to add to price pressures\u201d, she said.<\/p>\n According to the ABS, the average loan size to first home buyers was $607,500 as of the December quarter of 2025:<\/p>\n Advertisement<\/p>\n This means that the 0.25% rate hike delivered last month by the Reserve Bank of Australia (RBA) added $96 to the average monthly cost of a new first-home buyer mortgage.<\/p>\n The interest rate futures market expects the RBA to raise the cash rate again in May, with a very high probability of another hike before the end of 2026.<\/p>\n Advertisement<\/p>\n Should the RBA raise the official cash rate two more times to 4.35% (the previous peak level), it would add a cumulative $291 to the monthly servicing cost of the average first-home buyer mortgage.<\/p>\n Recent borrowers who extended themselves using the 5% deposit scheme face extreme mortgage stress and the possibility of falling into negative equity if the housing market experiences a significant price correction, as appears to be likely in Sydney and Melbourne:<\/p>\n Advertisement<\/p>\n Mortgage delinquencies also expose Australian taxpayers to possible losses.<\/p>\n Unfortunately, first home buyers have been drawn into the market at a potentially pivotal point. Many could end up as collateral damage in the RBA\u2019s struggle to keep inflation under control.<\/p>\n They will be urgently hoping that the financial markets are wrong and that the RBA does not continue to tighten interest rates.<\/p>\n Advertisement<\/p>\n If you want to save thousands of dollars on mortgage payments, use the MB Compare n Save mortgage comparison tool<\/a>. It\u2019s quick and easy.<\/p>\n![](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/Minimum-FHB-mortgage-repayments.png\")
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