Business & Finance
First-time buyers drive Australian mortgage demand amid investor retreat
Government guarantee programs and tax changes support entry-level buyers as broader property market activity cools.
The short version
- Mortgage broker and official data indicate first home buyers are the only borrower group increasing loan applications following tax reforms and interest rate rises.
- Federal programs allowing 5% deposits with waived mortgage insurance have concentrated demand near regional eligibility price caps.
- Lending to property investors has declined significantly after the government abolished negative gearing for most investment purchases.
Key facts
- Data from broker network Loan Market shows first-time buyer applications rose 10% on a weekly average basis in early August after a 3% drop in July, making them the only growing cohort compared to June levels.[The Guardian]
- Australian Bureau of Statistics figures show investor loans fell 8.6% by June on a seasonally adjusted basis, compared to a 2.9% decrease for first-time buyers.[The Guardian]
- Housing Minister Clare O'Neil stated that participants in the federal 5% deposit scheme have saved over $2.5 billion in lenders' mortgage insurance since 2020.[The Guardian]
- According to data firm Cotality, property prices for homes eligible under the government guarantee scheme have experienced slower declines than properties outside the program.[The Guardian]
What remains uncertain
- The long-term impact on overall home price trajectory remains unclear as entry-level property demand counters broader market downturns.[The Guardian]