Australian Property

First home buyers ignore rising interest rates and rush market

Leith van Onselen
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The Albanese government’s expanded 5% deposit scheme for first-home buyers came into effect on October 1, 2025, and had an immediate impact on the mortgage market.

According to the Australian Bureau of Statistics’ (ABS) latest housing finance data, the number of mortgages issued to first home buyers lifted by 6.8% in the December quarter of 2025 to be 9.1% higher year over year:

Number of FHB mortgages issued

The value of mortgage commitments to first home buyers jumped by 16% on the prior quarter and was the highest value since the March quarter of 2021:

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First home buyer mortgage value

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.