First Home Buyer Statistics in Australia

Understanding First Home Buyer Demographics

First home buyers represent approximately 30% of all property purchases across Australia, with Western Australia maintaining a strong position in supporting new homeowners. Recent data shows that the average age of first home buyers has increased to 31 years, reflecting the time needed to save adequate deposits and meet lending requirements.

The typical first home buyer household income sits around $85,000 annually, though this varies significantly across different regions. In Western Australia, regional areas often present more affordable entry points, making the Regional first home buyer Guarantee particularly valuable for those looking outside metropolitan Perth.

First Home Buyer Budget Considerations

Statistics reveal that most first home buyers allocate between 18-24 months to save their deposit, with many utilising the first home super saver scheme to accelerate their savings. The median purchase price for first home buyers in Western Australia ranges from $450,000 to $650,000, depending on location and property type.

Key budgeting factors include:

• Deposit requirements (typically 5% to 20% of purchase price)
• Stamp duty costs (reduced through first home buyer stamp duty concessions)
• Ongoing mortgage repayments
• Property maintenance and insurance costs
• Moving and settlement expenses

The Home Loans for First Home Buyers service provides detailed guidance on structuring your budget effectively.

Deposit Trends and Low Deposit Options

A significant 45% of first home buyers enter the market with deposits of 10% or less, utilising various low deposit options available through government schemes and lender programs. The 5% deposit option has become increasingly popular, particularly through the First Home Loan Deposit Scheme.

Many successful applicants combine personal savings with gift deposits from family members, which lenders typically accept provided proper documentation is maintained. Lenders Mortgage Insurance (LMI) applies to most loans with deposits below 20%, though various LMI Waivers for First Home Buyers exist for eligible purchasers.

Home Loan Application Success Rates

First home buyer eligibility criteria have evolved, with current approval rates sitting around 75% for well-prepared applications. Successful applicants typically demonstrate:

• Stable employment history (minimum 6-12 months)
• Clear savings history showing genuine savings capacity
• Manageable debt-to-income ratios
• Complete documentation meeting lender requirements

Pre-approval rates have increased significantly, with over 60% of first home buyers now securing conditional approval before actively house hunting. This approach provides clarity on borrowing capacity and strengthens negotiating positions.

Interest Rate Preferences and Loan Features

Current statistics show that 55% of first home buyers initially choose fixed interest rates for stability and predictable repayments. However, many opt for split loans combining both fixed and variable interest rate components to balance security with flexibility.

Popular loan features among first home buyers include:

• Offset accounts (chosen by 40% of borrowers)
• Redraw facilities for accessing extra repayments
• Interest rate discounts for new customers
• Fee waivers during initial loan periods

The Getting a Lower Interest Rate resource explains how first time borrowers can secure competitive rates.

Government Support Uptake

First home buyer grants and concessions show strong utilisation rates across Western Australia. The first home owner grants (FHOG) assists thousands of buyers annually, while stamp duty concessions can save purchasers several thousand dollars on their property transaction.

The First Home Buyers in Western Australia guide details specific support available to WA residents, including regional incentives and metropolitan programs.

Market Entry Timing and Decision Factors

Research indicates that 35% of first home buyers spend 12-18 months actively searching before making their purchase. This timeframe allows for thorough market research, financial preparation, and identification of suitable properties within budget constraints.

Factors influencing purchase timing include:

• Interest rate cycles and economic conditions
• Property market availability and pricing
• Personal financial readiness and job security
• Life stage considerations and family planning

Professional Support and Guidance

Statistics demonstrate that first home buyers who engage professional mortgage broking services typically secure more favourable loan terms and navigate the process more efficiently. Broker-assisted applications show higher approval rates and often access wholesale interest rate discounts not available to direct applicants.

The First Home Buyer Experiences section provides real-world insights from successful purchasers who have completed their property journey.

Understanding these statistics helps prospective buyers set realistic expectations and develop effective strategies for entering the property market. Whether you're just beginning your research or ready to submit applications, having accurate data supports informed decision-making throughout the home buying process.

Call one of our team or book an appointment at a time that works for you to discuss how these statistics apply to your specific situation and explore suitable home loan options for your first property purchase.