How are Australians dealing with rising prices and an increased fear of missing out?
Finder’s First Home Buyer Report explores the motivations, behaviours and values of Australian first home buyers navigating one of the most expensive housing markets in the world. This report also tracks key trends that have emerged since Finder’s previous First Home Buyer Report in 2022.
With many prospective buyers sidelined by the high interest rates of the past two years, understanding the mindset of first home buyers is particularly important. Following recent cash rate cuts by the Reserve Bank of Australia (RBA) and with more expected, some buyers are finally getting their first peak into Australia’s elusive property market.
Key statistics
- Most (60%) first home buyers say recent interest rate cuts influenced their decision to buy now.
- 1 in 4 buyers are looking interstate or in a different region.
- 70% of first home buyers are buying or have bought with less than a 20% deposit.
- Nearly 2 in 3 (65%) spend, or expect to spend, 30% or more of their income on mortgage repayments.
Australia’s exceptional housing market
Australia’s resilient housing market makes the experience of first home buyers particularly important to examine. The Finder First Home Buyers Report investigates the challenges of saving for a deposit and managing a mortgage, the role of family and government assistance, and the pressure from all sides to “climb the property ladder”.
First home buyer fears
- The percentage of first home buyers who bought out of a worry that property prices would soon become too expensive has increased from 31% in 2022 to 38% in 2025.
- 79% of mortgage holders say they are happy, however this drops to 67%, below that of renters, for mortgage holders who struggle to pay their mortgage.
- Nearly 2 in 3 (65%) first home buyers are already, or expect to be, in mortgage stress (defined as spending 30% or more of gross income on mortgage repayments).
What is the fuelling the fear?
- Almost two in three (61%) buyers say they have missed out on a property they were seriously considering.
- Being outbid by a competing buyer is the most common reason, affecting one in three (33%) buyers.
- The time first home buyers spend searching for a home is also increasing, likely due to rising competition, over the past three years, the number of buyers spending a year or more searching for a home has risen by 24%.
The cost of acting too quick
- 70% of first home buyers in 2025 won’t wait to save the typical 20% deposit before purchasing.
- In another sign that FOMO is influencing buyers, almost half (47%) of first-time buyers paid more than they budgeted, a significant increase from 38% in 2022.
- 1 in 7 (14%) Australians who bought their first home in the past 12 months have no savings left, while 1 in 3 (33%) have less than $10,000 remaining.
- Almost half (45%) of first home buyers who purchased in the past year say they regret their decision.
How first home buyers are managing costs
- One-third of new buyers (34%) didn’t take out their home loan with their usual bank.
- A quarter of first home buyers (24%) are searching for their home in a different region or state to where they currently live.
- 78% of first-time buyers say they have applied for, or plan to apply for, government support schemes.
The number of solo buyers continues to drop
- The proportion of suburbs where the average Australian can afford a mortgage on the median house has fallen from 57% in 2017 to just 16% in 2025.
- The proportion of single first home buyers has fallen from 45% in 2021 to 39% in 2025.
- Our previous report found that men (44%) are more likely than women (38%) to buy independently. This gap has widened, with only 34% of women purchasing as sole buyers in 2025.
The bank of Mum and Dad
- In 2025, 17% of first home buyers say they received money from their parents, up from just 11% in 2022.
- Among buyers without support, 40% took 5 years or more to save a deposit, compared to just 29% of those who received family assistance.
- The average assisted buyer has 41% more leftover in their savings after buying their first home.
This article first appeared in finder.com.au
First Time Buyer Assistance That Actually Works
If you’re a First Time Buyer trying to deal with any of the issues outlined above, take a breather and relax. There’s finally a way for you to get help with one of the most expensive purchases you will ever make.
While the government schemes are useful, more money doesn’t make the process of buying easier. There’s two key ways you can get help that will actually move you closer to accessing the keys to your target property
- What’s Best First – Home or Investment guidebook – this is a decision making tool with a difference. It steps you through the personal, financial, and practical components of choosing between whether you’ll be better off with or without the government assistance, plus what and where you should buy. Access your FREE guide here.
- Property Smart Track – if you’re in the process of actually trying to buy your ideal property, the BSP will actually help you buy successfully. It’s Australia’s ONLY interactive, in-the-moment buyer system with the short cuts and power boosters to help you deal with sales agents and side step your competition. Access more information about the Property Smart Track here.
