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According to fresh data from the aggregator LMG, first home buyer (FHB) lodgements lifted sharply after the scheme commenced on 1 October 2025.
In October, FHB lodgements rose 49 per cent above the average of the prior six months and 41 per cent month on month, before easing in November.
Activity has remained elevated compared with historical levels, with December lodgements still 17 per cent above pre-scheme levels.
The December quarter of 2025 (4Q25) delivered the strongest growth in first home buyer lodgements on record, with volumes rising 26 per cent quarter on quarter.
“Many expected activity to fall away once October passed,” said Ewen Stafford, executive director and CEO of LMG.
“What we saw instead was borrowers continuing with well-considered plans, supported by brokers, even as sentiment softened.”
The recent uplift was driven primarily by owner-occupier first home buyers, while investor first home buyers also recorded their strongest growth since July 2022.
Growth was broadly based across Australia. Victoria recorded weaker growth than other states, with first home buyer lodgements rising 11.7 per cent quarter on quarter in 4Q25, although the state continued to record the highest overall levels of activity. Queensland led the market, with lodgements up 33.2 per cent over the quarter.
NSW also recorded quarter-on-quarter growth of 33.2 per cent, followed by South Australia at 29.2 per cent and Western Australia at 21.3 per cent. Monthly trends were consistent across states, with strong growth in October followed by softer conditions in November.
Policy changes fuel growth
LMG said that first home buyer demand was “heavily impacted” by the government’s expanded 5 per cent Deposit Scheme. Broker Daily has previously reported on how properties eligible under the scheme are increasing in value faster than homes priced outside the caps.
Launched in its expanded form on 1 October, the scheme allows first home buyers to purchase a home with a 5 per cent deposit, with the government guaranteeing the remaining portion of the loan and enabling buyers to avoid paying lenders mortgage insurance (LMI).
More than 21,000 first home buyers have used the scheme since its launch.
Speaking to Broker Daily, Brisbane-based Aussie broker Melanie Smith said she is seeing more first home buyers entering the market, adding to competition and upward pressure on prices.
“First home buyers are getting really good opportunities to get into market now that the schemes have evolved to include more eligible buyers and properties,” she said.
“These buyers would have been saving for longer, or just not getting into the market at all, without these schemes. But the flow-on effect is that they are pushing the prices up to meet the demand. And competition is hot.”
Stafford added that December’s FHB lodgement readings indicate that the demand from the scheme remains robust, despite the potential for rate hikes in the near term.
He said: “For brokers, settlement data is one of the clearest indicators of pipeline health. The strength we saw into December suggests there’s still meaningful runway carrying into early 2026.”
[Related: WA brokers warn of limitations of Help to Buy scheme]