Exclusive data from Aussie Home Loans (Aussie) reveals how Australia’s first-home buyer (FHB) landscape has changed dramatically over the past two decades – with buyers now entering the market later than ever before.
Aussie’s figures show that the share of FHBs aged under 20 has dropped from 26% in 2005 to just 0.5% in 2025, while those aged over 45 have risen from 2% to 10% over the same period.
Despite this generational shift, around 100,000 Australians still buy their first home each year, and the federal government’s new 5% deposit First Home Guarantee could open the door to thousands of younger buyers.
New research from Resolve Finance shows first-home buyers are also stretching their budgets further, with the average FHB expecting to spend $637,000 in 2025 – up from $599,000 last year. Resolve Finance managing director Don Crellin said buyers are “adapting” rather than walking away, even as price expectations climb.
At the same time, townhomes are emerging as a popular entry point under the expanded HGS – offering more space than apartments but at a lower cost and maintenance than detached houses, particularly appealing for 30-something buyers planning families.
Aussie’s 20-year data snapshot shows clear shifts in when Australians buy their first property:
Aussie broker and media commentator Alya Manji (pictured) said the scheme could be transformative for those struggling to save a deposit.
“For many Australians – especially young people – the dream of owning their first home has seemed out of reach for decades,” Manji said.
“The changes to the First Home Guarantee – 5% deposit and no lenders mortgage insurance – are set to bring timelines forward by years and could mean thousands can get their hands on keys sooner.”
She added that getting onto the property ladder earlier can make a big difference over time.
“In the long run, it is much better to own a first home sooner, rather than waiting and watching the market become more out of reach.”
To help first-home buyers turn intent into action, Aussie has launched a First Home Guarantee Calculator, a market-first tool that shows how far a 5% deposit could go. The calculator estimates what a buyer can afford, includes stamp duty, and recommends suburbs within budget via Aussie Property Search.
With Money.com.au data showing the average Gen Z saving is $40,185, the tool helps buyers set realistic expectations about where they can buy and how soon.
Manji said early planning remains key to avoiding common pitfalls.
“For FHBs, the smart move now is to get a tailored assessment early, understand true borrowing capacity and line up pre-approval,” she said. “Because there are so many areas to search, many affordable suburbs are overlooked. The First Home Guarantee Calculator puts affordable suburbs on the shortlist.”
The latest First Home Guarantee changes, which took effect on Oct. 1, allow eligible buyers to purchase a home with just a 5% deposit without paying Lenders Mortgage Insurance (LMI).
As Manji noted, the policy could help turn intent into homeownership for thousands: “The challenge of saving for a deposit is cross-generational… [but] the 5% deposit and no LMI could mean thousands can get their hands on keys sooner.”
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