Peter Njoroge feels ready to buy a home for his family.<\/p>\n
The 46-year-old father of three said he could afford the repayments on a house in Werribee, the south-west Melbourne suburb where he rents.<\/p>\n
Mr Njoroge earns about $130,000 a year working in disability care (including on weekends).<\/p>\n
Adding his wife’s annual earnings of $40,000 from childcare work, the household’s combined pre-tax income is $170,000.<\/p>\n
They live comfortably but \u2014 like many families \u2014 have struggled to save for a house deposit given the high costs of living and rent.<\/p>\n
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Peter with his wife and three children.\u00a0 (ABC News: Kate Ashton)<\/p>\n
It’s well-paid working Australians like Mr Njoroge that a re-elected federal government promised to help into home ownership through programs like its expanded 5 per cent deposit scheme for first home buyers.<\/p>\n
While similar initiatives have existed for a while, the revamped federal scheme now boasts unlimited places, no income limits and higher price caps for eligible properties<\/a>.<\/p>\n It also offers options for single parents and buyers who have not owned property in 10 years.<\/p>\n Knockback after knockback<\/p>\n On paper, Mr Njoroge is eligible.<\/p>\n But he has been unable to secure finance from banks to use the scheme because he is employed as a casual. His wife is too.<\/p>\n While banks can assist casual employees to secure home loans, it’s Mr Njoroge’s strong view that his employment status has been a major barrier.<\/p>\n “They always ask us, ‘Can one of you be permanent?'” he said.\u00a0<\/p>\n “[But] it’s not a choice. It’s just the way it is.”<\/p>\n Peter is worried he will have to continue renting while other first homebuyers edge ahead. \u00a0 (ABC News: Kate Ashton)<\/p>\n He said the experience of being knocked back for loans was “demoralising” and made him feel like he was slipping behind while others got a head start.<\/p>\n “We are essential workers,” he said.<\/p>\n “Like other workers, we need houses.<\/p>\n “And then at the same time I’m looking at the house prices. They are rising.”<\/p>\n He said many of his colleagues faced a similar challenge.<\/p>\n Mr Njoroge hopes his family will have a better chance of getting bank financing through the federal government’s promised Help To Buy scheme, where the Commonwealth purchases up to 30 per cent of a home or 40 per cent of a new build.<\/p>\n That program has a limit of 10,000 places and is meant to be launched before the end of the year.<\/p>\n The median house price in Werribee has reached a record high of $620,000. (ABC News: Kate Ashton)<\/p>\n Neither the federal housing minister’s office or the housing delivery agency Housing Australia would provide further details on the start date.<\/p>\n But while he continues renting, Mr Njoroge is one of a number of Australians feeling nervous about the prospect of growing competition and rising prices<\/a> in parts of the nation’s booming housing market that were once considered more affordable.<\/p>\n Loading…Expanded scheme accelerates loan demand<\/p>\n While the government has not provided data on how many people have registered for the 5 per cent deposit scheme since it relaunched on October 1, figures provided by banks and mortgage brokers showed surging demand.\u00a0<\/p>\n One real estate agent said it was taking longer than usual to get pre-approval from banks, with some buyers now waiting weeks.<\/p>\n Mortgage aggregator Loan Market Group said it recorded a 39 per cent surge in first home buyer loan applications in October compared to September.\u00a0<\/p>\n Some commentators warn increased demand from first homebuyers will further inflate house prices. (AAP Image: Dave Hunt)<\/p>\n Westpac said it had received more than twice as many loan applications tied to the 5 per cent deposit scheme in October 2025 compared to the previous October, when the previous scheme was in place.\u00a0<\/p>\n Bank Australia also reported “strong interest” and an increase in loan applications from potential buyers using the scheme since it came into effect.\u00a0<\/p>\n Home prices also rising faster<\/p>\n While analysts warn there will be a lag in data that shows exactly how the initiative is impacting demand and prices, figures released on Monday from research firm Cotality revealed the fastest home value growth in two years.<\/a><\/p>\n Analysts attributed that growth to first home buyer incentives, ongoing supply shortages and previous interest rate cuts.<\/p>\n<\/p>\n
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