First-Home Buyer Surge Reshapes Australia’s Mortgage Market in 2026
Australia’s mortgage landscape is undergoing a significant shift. According to Equifax’s Global Credit Trends FY25 Report, the number of first-home buyers entering the market jumped 11.2% in the final quarter of 2025 compared to the same period in 2024. Government incentives, rising property values in metro areas, and a growing appetite for regional property are reshaping how Australians approach homeownership — and bringing both opportunities and risks that borrowers should understand.
Finance Hub & Networks (FinHub), a licensed mortgage brokerage in Sydney, Australia (ACL 573164), breaks down what this data means for homebuyers, investors, and anyone considering refinancing in today’s market.
What’s Driving the First-Home Buyer Surge?
Government schemes such as the First Home Guarantee (allowing eligible buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance) have contributed to a measurable increase in new market entrants. Rising property values in Sydney, Melbourne, and other capital cities are also pushing both first-home buyers and property investors toward regional markets, where entry prices can be more accessible.
However, it’s important to note that these incentives come with eligibility criteria and property price caps. Not every buyer will qualify, and the schemes don’t eliminate the financial commitment involved in taking on a mortgage. Borrowers should carefully consider their long-term repayment capacity, especially in an environment where interest rates remain elevated.
Regional Markets: Opportunity Meets Risk
One of the standout findings from the Equifax report is the growth of investor-backed mortgage accounts outside city centres — up 18.27% in 2025, compared to just 6.62% growth in primary residence mortgages. Queensland led the charge with a 36% increase since 2021, while New South Wales and Victoria recorded growth of 8% and 4% respectively.
For borrowers, this trend presents both potential benefits and important considerations:
- Potential benefits: Regional properties can offer more accessible price points and, in some areas, strong rental yields
- Key risks: Regional markets can be more volatile, particularly those with high exposure to single-industry economies. Equifax cautioned that “volatility of regional markets, particularly those with high exposure to single-industry risks” requires careful assessment
- Lending considerations: Some lenders apply different criteria for regional properties, which can affect borrowing capacity and loan terms
Refinancing in a Higher Rate Environment
With cash rates remaining elevated, the Equifax report notes that lenders are optimising refinancing strategies as consumers seek more competitive interest rates on their home loans. For existing mortgage holders, this environment may present opportunities to review current loan arrangements — but it’s equally important to factor in any break costs, exit fees, or changes in loan features when considering a switch.
A mortgage broker with access to multiple lenders can help borrowers compare options across the market. At FinHub, we compare options from 35+ lenders on our panel to help clients find a loan that suits their individual financial situation.
Delinquency Trends: What the Data Shows
While 90-plus-day arrears on consumer credit showed early signs of stabilisation at the end of Q4 2025, the dollar value of those delinquencies rose 6.8% year-on-year. This suggests that financial stress is becoming more concentrated among borrowers with larger loan balances — a reminder that taking on a mortgage requires careful budgeting and realistic assessment of repayment capacity.
Frequently Asked Questions
How much did first-home buyer activity increase in Australia?
According to Equifax’s Global Credit Trends FY25 Report, first-home buyer numbers rose 11.2% in Q4 2025 compared to Q4 2024. Government incentives and shifting property values have contributed to this increase, though eligibility criteria apply to most assistance schemes.
Are regional property markets a good option for buyers?
Regional markets have seen significant growth, with investor-backed mortgages outside city centres increasing 18.27% in 2025. While regional areas can offer more accessible entry prices, they also carry risks including exposure to single-industry economies and potentially higher market volatility. Each borrower’s situation is different, and thorough research is important before making any property decision.
Should I consider refinancing my home loan in 2026?
With interest rates remaining elevated, reviewing your current loan arrangement may be worthwhile. However, refinancing involves costs such as potential break fees, discharge fees, and application fees that need to be weighed against any potential savings. Speaking with a qualified mortgage broker can help you understand whether refinancing makes sense for your individual circumstances.
What does rising mortgage delinquency mean for borrowers?
While delinquency volumes have stabilised, the dollar value of overdue loans increased 6.8% year-on-year in Q4 2025. This highlights the importance of realistic budgeting when taking on or managing a mortgage, particularly for borrowers with larger loan balances.
How can a mortgage broker help in the current market?
A mortgage broker can compare loan options across multiple lenders — at FinHub, we have 35+ lenders on our panel. Whether you’re a first-home buyer exploring government schemes, an investor considering regional markets, or an existing borrower reviewing your loan, a broker can help you understand your options. Your full financial situation would be reviewed before any recommendation is made.
Take the Next Step
Whether you’re entering the market for the first time, exploring investment opportunities, or reviewing your current mortgage, understanding your options is the first step. Contact Daniel Nguyen at FinHub for a no-obligation consultation — call 1300 346 482, mobile 0430 11 11 88, or visit finhub.net.au.
Finance Hub & Networks Pty Ltd — Australian Credit Licence 573164. Your full financial situation would need to be reviewed prior to acceptance of any offer or product.
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