First homebuyer scheme kicks in
The number of first homebuyer loans increased 6.8 per cent in the December 2025 quarter, as the 5 per cent deposit scheme began to take some effect on the market.
The number of investment loans also increased another 5.5 per cent, to be 23.6 per cent higher over the year.
Source: ABS
With loan sizes increasing, the total value of new loan commitments rose to a record $108.3 billion over the December 2025 quarter, with upwards revisions taking the annual growth all the way up to 23.5 per cent.
The quarterly value of investment lending rose to a new high of $43 billion, up 31.8 per cent from a year earlier, with a solid pick-up notable in Victoria in the December quarter.
Source: ABS
The average loan size for homebuyers in New South Wales rose from $810,000 to a record $873,000 in 2025, while Queensland saw a significant increase from $650,000 to $736,000.
The government has been throwing around some big numbers during Question Time about the number of first homebuyers taking up the 5 per cent deposit scheme, but if they are correct then it's not yet evident in these figures.
Source: ABS
On that basis it looks likely that the bottom quartile of the market will be under some significant pressure in 2026 as first homebuyers begin to pile in.
Westpac noted that under 5 per cent of lending was for new dwellings, which was the lowest share on record.
The rapid rise in the Aussie dollar continued, all the way up to 71.3 US cents, a 3-year high.
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