First-Home Buyers Return: Applications Jump 10% as the Market Tilts Toward New Buyers

Australian first-home buyers are showing renewed confidence, with fresh mortgage-market data indicating they are the only major borrower group currently making more loan applications than in June.

Loan Market data reported by The Guardian on 24 August shows first-home buyer applications dipped 3% in July before rebounding 10% on a weekly-average basis in the first half of August. Applications from other owner-occupiers and investors were roughly unchanged compared with June.

That is an encouraging development for people who have spent months—or even years—waiting for an opportunity to enter the property market.

The changing borrower mix comes as investor lending has weakened. Australian Bureau of Statistics figures cited in the report show investor loan numbers fell 8.6%, compared with a smaller 2.9% decline among first-home buyer mortgages.

Government support is also playing an important role. Australia’s expanded 5% Deposit Scheme allows eligible buyers to borrow up to 95% of an eligible property’s value with a government guarantee, avoiding lenders mortgage insurance. Housing Australia reports that the scheme is specifically designed to help eligible buyers purchase sooner with lower upfront costs.

The latest figures show the scale of its impact. More than 320,000 Australians have become homeowners through the scheme since 2020, while participants had collectively saved more than $2.5 billion in lenders mortgage insurance by the end of July 2026. For Perth, the current property-price cap cited for the scheme is $850,000.

For prospective Perth buyers, improving sentiment does not mean every property is affordable or that purchasing is automatically the right decision. Borrowing capacity, deposit requirements, repayments and eligibility still need to be assessed individually.

However, the combination of reduced investor activity, government support and renewed first-home buyer confidence means this may be a useful time for prospective buyers to understand what options are actually available to them.

Naga Mortgage Brokers can help you assess your borrowing position, understand available first-home buyer support and compare suitable home-loan options before you start making offers.

General information only. Eligibility and lending criteria, fees and charges apply.