First-home buyer debt at record high after federal deposit scheme expansion

The Albanese government expanded the Australian 5% Deposit Scheme in October last year. Picture: Josh Chadwick The Albanese government’s flagship housing policy has plunged first-home buyers into pricier loans and saddled them with lifetime costs that eclipse the upfront savings offered by the scheme. Primara Research analysis of ABS data revealed the average first-home buyer loan has risen by nearly $50,000 since the Australian Government 5 per cent Deposit Scheme was expanded in October 2025. Growth in first-home buyer debt was twice as fast as the rise in non-first home buyer debt, with the sharpest rise in loan sizes recorded in the first three months after the scheme expansion. First-home buyer debt growth over the December quarter was the single largest quarterly rise since the ABS began tracking loan data in 2002, the analysis revealed. MORE: What your home will be worth in 2031: all suburbs list Housing Australia reported about 102,000 Australians used the scheme after the expansion, representing roughly half of first-home buyer loan commitments over the period. The scheme, which allows participants to purchase with deposits as low as 5 per cent while avoiding costly lender...