Despite climbing property prices, first home buyers (FHBs) are regaining a foothold in the housing market — proving that with the right incentives and financial planning, homeownership is still within reach for many Australians.
The latest First Home Buyer Mortgage Insights Report from Money.com.au shows that 125,036 first-home buyer loanswere issued in the 12 months to March 2025, representing a 3.8% annual increase.
While interest rate rises may have impacted borrowing capacity, FHB activity is rising in states offering supportive policy frameworks — particularly Queensland, the only state to see year-on-year growth, up from 6.5% to 6.9%. “Queensland’s relative affordability and lifestyle appeal are turning heads,” says property expert Victoria McGavin. “It’s attracting younger buyers who want more for their money — space, climate, and a chance to build equity sooner.” While Victoria saw a slight dip, it still accounts for the highest proportion of FHB loans nationally, reflecting both its population base and the resilience of its metropolitan markets.
Loan sizes tell a compelling story:
* Queensland: $524,169 (highest average FHB loan)
* Victoria: $517,930
* Western Australia: $489,894 (up 14.1% YoY)
Nationally, the average FHB loan is $542,356, while the average for all owner-occupiers is now $659,922. These figures suggest that FHBs are prepared to borrow more to secure quality properties — and are showing greater financial confidence amid slowly easing inflation and stabilised borrowing rates.
