5% deposit scheme drives surge in younger first home buyers
The expansion of the 5% deposit scheme appears to be having a significant impact on younger first home buyers, with new Equifax analysis showing demand from Australians aged 18–25 jumped 22.8% in the six months to March 2026.
The data suggests many buyers are adapting to affordability and lending pressures rather than delaying their plans altogether. One-third of first home buyers widened their property search, with many looking beyond their existing suburbs or local areas to find homes that better matched their borrowing capacity.
Equifax also found interstate migration was becoming more common, with NSW-to-Victoria and NSW-to-Queensland forming the two largest interstate pathways.
Demand for lower-value loans also grew faster than high-value lending, reflecting how current lending settings are influencing purchasing decisions. Even with lower-deposit schemes available, borrowers still need to show they can comfortably manage repayments under higher assessment rates. This is pushing many buyers towards lower-priced homes, smaller loan sizes and more affordable parts of the Sydney property market and broader property landscape.
About the author – Alex Veljancevski is a Sydney Mortgage Broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.
