The average age of Australian teachers buying their first homes has dropped from 36 to 33 in the past five years, according to new data from Teachers Mutual Bank.
The bank’s analysis used internal member data, median dwelling prices for June 2025 (sourced from the Cotality Housing Market Update, July) and state government teaching salary information. It assumes teachers save 15% of their annual salary.
Chief customer officer Greg Johnson (pictured) said the government’s Home Guarantee Scheme had helped accelerate the shift.
“Over the last five years and since the government introduced the Home Guarantee Scheme, we’ve seen the average age of our first-home buyers gradually begin to fall,” Johnson said.
“Our data shows the scheme has proved popular with teachers, and in the 12 months to June 2025 60% of our first home buying members accessed it as way to get a foothold in the market sooner.”
Cotality’s September Monthly Housing Chart Pack shows the Home Guarantee Scheme’s expanded settings, effective from Oct. 1, will further widen opportunities by removing income and place limits and lifting property price caps. The changes mean 63.1% of national markets now fall under the caps, up sharply from just one-third previously.
Johnson said many younger teachers were still facing significant financial barriers.
“In most areas around Australia, and particularly the east coast markets, coming up with a minimum 5% deposit is still a huge task, requiring strict savings habits despite the cost-of-living crunch which we know disproportionately affects younger Australians,” he said.
Cotality economist Kaytlin Ezzy said the higher price thresholds will give first-home buyers “much greater freedom of choice,” including access to more suburbs in mid-sized capitals such as Brisbane, Perth, and Adelaide.
Ray White chief economist Nerida Conisbee also pointed to a wider market trend, noting that affordable housing is outperforming typical properties across most capitals, with affordable houses growing at 8.3% annually compared to 8% for the broader market. She said the expanded Home Guarantee Scheme and recent rate cuts are creating “powerful demand drivers specifically targeting properties in the affordable tier.”
To help aspiring buyers build deposits, Teachers Mutual Bank has expanded its savings account offerings.
Its new Starter Saver account, designed for members up to age 30, provides the bank’s highest variable interest rate of 4.50% on balances up to $50,000, with no monthly fees, no minimum deposit and no minimum balance requirement.
“When saving for a big-ticket item like a first home deposit, putting your money into a high-interest, low-fee account can shave weeks or months off your saving journey, so it’s important to make sure your money is working as hard as you are,” Johnson said.
“We know that everyone’s circumstance is different and that’s why we’ve recently expanded the types of savings accounts we offer.”
The Starter Saver sits alongside the Essential Saver account and a new Momentum Saver account, which rewards members who deposit at least $100 a month and make no withdrawals with bonus interest on top of the standard rate.
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