First-home buyers are returning to the market in significant numbers, according to new data from Loan Market Group.

In June, the number of new entrants jumped 36% year-on-year, with Victoria seeing the biggest surge. Ewen Staffordfrom LMG says this isn’t just a short-term reaction to rate cuts:

“Australians are adjusting to a new lending environment where affordability, confidence, and strategy are starting to align again.” First-home buyers now make up 13% of all new mortgage approvals (excluding refinancing). The most active regions by mortgage value include Melbourne’s eastern, inner, and western suburbs, Greater Brisbane, Coastal Sydney, and Greater Western Sydney.

Overall mortgage approvals, across all buyer types, rose 5% in June compared to the previous year.