Australians say they can’t catch a break getting into the market – but many first home buyers are quietly kneecapping their own chances.
New data shows everyday splurges are being baked into banks’ assessments and, in some cases, wiping tens of thousands off what buyers can borrow.
A nationally representative Money.com.au survey reveals the small luxuries Aussies refuse to cut, even when saving for a deposit, with streaming subscriptions topping the list (23 per cent), followed by takeaway coffee or matcha (18 per cent) and online shopping (16 per cent). Eating out (14 per cent) and food delivery or takeaway meals (13 per cent) are next, with date nights (11 per cent) and gambling (5 per cent) further down.
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Money.com.au’s mortgage expert, Nick Burgess, says there’s a growing disconnect between traditional saving advice and the reality of today’s housing market, particularly for
first home buyers.
“Those ‘small luxuries’ have become a relatively low-cost escape from the doom and gloom
of the cost-of-living crisis. For many Australians, cancelling Netflix or skipping their daily
coffee or matcha doesn’t feel like it’s going to move the needle,” he says.
“The other side of the coin is that government schemes have made it possible to buy a home
with a 5 per cent deposit, so cutting back to save every last cent doesn’t feel necessary anymore.”
Source: Money.com.au
This mindset, he warns, is a dangerous trap. A lower deposit doesn’t negate the need for financial discipline; it merely shifts the goalposts slightly, making every dollar saved even more critical.
“When I speak to young buyers, a lot of the feedback I still get is that their parents
were able to save for a deposit in a very different environment, when house prices were
lower relative to incomes,” he says.
“Today, it can feel like no amount of cutting back on coffee will get them to their deposit target sooner.”
Millennials, often caught between rising costs and aspirational living, are least likely to forgo their daily brew, with 22 per cent unwilling to part with it. Picture: Richard Dobson
The most damning revelation, however, comes when it’s time to apply for a loan.
“The challenge is that too much discretionary spending is precisely what lenders scrutinise
when you finally apply for a home loan. All those ‘little’ expenses, your Netflix, Uber Eats,
daily coffee, are baked into what lenders realistically expect you to spend,” Mr Burgess says.
“But if that discretionary spending runs higher than a lender’s benchmark, it can eat into how
much you can borrow. In some rare cases, it can shave tens of thousands – sometimes
$20,000 or more – off your borrowing capacity.”
Generational spending habits: The self-sabotage continues
The data paints a clear picture across generations, proving that the ‘small luxury’ addiction is widespread.
Living up to the ‘avo on toast’ stereotype, Gen Z are the most reluctant to give up eating out, with 21 per cent holding firm, followed by streaming at 19 per cent and takeaway coffee or matcha at 18 per cent.
Social spending like date nights, prioritised by 14 per cent, also features prominently.
Meanwhile, Millennials, often caught between rising costs and aspirational living, are least likely to forgo their daily brew, with 22 per cent unwilling to part with it, matching their reluctance to cut streaming subscriptions, also at 22 per cent.
Streaming subscriptions topped the list of what buyers were least likely to give up when it came to their spending habits.
Food delivery or takeaway meals, a habit for 16 per cent, eating out for 14 per cent, and online shopping for 12 per cent, also remain high priorities.
Even Gen X, ostensibly more financially established, isn’t immune.
Streaming subscriptions are non-negotiable for 28 per cent of them, followed by online shopping at 16 per cent and takeaway coffee or matcha at 15 per cent.
Food delivery or takeaway meals, a habit for 14 per cent, and eating out, for 12 per cent, also prove hard to kick.
While they might be closer to home ownership, these habits could still be impacting their ability to upgrade or invest.
So, before first homebuyers point the finger at interest rates, property prices, or the ‘system,’ perhaps it’s time for a hard look in the mirror.
That daily coffee, that streaming binge, that impulse online purchase – they’re not just small luxuries.
They’re the silent assassins of your home ownership dream.
English (US) · 