Australia’s first-home buyers are reshaping the journey to ownership, with new CommBank data pointing to smaller deposits, shared purchases, and government support schemes as key levers.
But sentiment remains cautious, with a recent national survey finding 46% of Australians do not believe they will ever own a home and only 5% feel confident about buying this year, even as mortgage stress has fallen to a three-year low.
Against that backdrop, the average first-home buyer is now 33, borrowing about $480,000 with a deposit of roughly 16%, signalling a clear move away from the traditional 20% benchmark. Around 60% are buying with another person, often a spouse, friend, or family member, to accelerate their entry into the market.
“We’re seeing Australians rethink the path to their first home,” CommBank’s home buying general manager Rebecca Markwell (pictured) said in a media release, noting a growing take-up of options that allow borrowers to buy sooner without lenders mortgage insurance, as well as shared ownership structures that keep finances separate.
PropTrack data indicates a typical Australian household can now afford only about 15% of homes sold nationally, down from around 43% four years ago when mortgage rates were at historic lows. This tightening in affordability is driving first-home buyers towards government schemes, smaller deposits and co-buying strategies.
Nearly 50,000 CommBank customers have used the Australian government’s 5% Deposit Scheme since July 2022, while early demand for the Help to Buy shared equity program has been strong, with more than 1,500 applications in its first month and CBA currently the only major bank participating.
Metropolitan markets continue to attract almost three-quarters of first-home buyers, a trend steady since 2021, with average metro loans of about $507,000 compared with $400,000 in regional and remote areas.
Deposits remain similar at around 16%, but loan sizes – and therefore repayments – differ markedly, sharpening the trade-off between location and affordability.
Markwell said many clients are weighing city connectivity against regional value, observing that “ultimately, the best choice is the one that aligns with each buyer’s needs, priorities, and goals.”
That calculus is evident in activity across outer growth corridors and emerging regional centres such as Orange in New South Wales, Baldivis in Western Australia, and Claremont in Tasmania.
CommBank has also adjusted lending settings to better mirror modern financial realities.
A more nuanced view of HELP debt, recognition of eligible boarder income and shared ownership products are helping some customers strengthen borrowing capacity and step onto the ladder earlier.
“Entering the market earlier can make a meaningful difference over time, with many focusing on taking a manageable first step, which can help build equity over the long term," Markwell said.
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