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1 in 6 FHBs accelerate plans to buy under new scheme
One in six first home buyers have revealed accelerating their purchase plans following the introduction of the Australian government’s 5 per cent deposit scheme, as market demand and competition rise.
A new consumer survey has shed light on Australians’ awareness and sentiment on the expanded First Home Guarantee scheme, which commenced on 1 October.
Under the new scheme, commonly known as the Australian Government 5% Deposit Scheme, all first home buyers across the country can purchase a property with a 5 per cent deposit, without lenders mortgage insurance.
The survey, developed by Agile Market Intelligence’s Consumer Pulse, gathered responses from 1,358 Australian consumers regarding their understanding of and attitudes towards the expanded scheme in September.
In total, 45 per cent of consumers reported understanding the First Home Guarantee scheme, while 31 per cent of surveyed respondents were completely unaware of it.
Agile Market Intelligence director, Michael Johnson, said that the understanding of the scheme varied across the Australian population.
Among the respondents, one in four, or 24 per cent, held misconceptions about the scheme, including 9 per cent who assumed it removes stamp duty and 7 per cent who expected the government to contribute to the property’s purchase price.
“There’s opportunity for better education and communication in this space, with nearly a third of consumers unaware of the First Home Guarantee expansion, and another quarter holding misconceptions about how it works,” Johnson said.
Purchase acceleration
Among the surveyed consumers, 58 per cent identified as prospective first home buyers, with 25 per cent reporting a desire to use the First Home Guarantee scheme within the next two years.
Additionally, 5 per cent of the FHB survey respondents reported planning to use it in the next two months, before the end of 2025. First home buyers have also reported being pressured by time to enter the market, with one in six respondents accelerating their purchase plans specifically due to the policy change.
Johnson said that accelerating purchases reflected a genuine increase in demand, rather than merely bringing forward decisions that buyers were already planning to make.
“The 16 per cent acceleration rate indicates the policy is successfully reducing barriers for buyers who were previously unable or unwilling to enter the market,” he said.
Brokers lose their appeal
Despite a surge in interest in the scheme, the consumer survey showed a shift in potential behaviour, with brokers being the least favoured channel for prospective buyers to access the scheme.
In total, only 28 per cent of eligible consumers said they would consult a mortgage broker.
In comparison, 36 per cent of first-time home buyers said they would apply on their own, and another 36 per cent said they wanted to approach a local bank directly.
Johnson said that the combined 64 per cent of buyers who favour bank branches or mortgage brokers highlights a continued demand for face-to-face guidance on major financial decisions.
“The channel distribution has important implications for scheme implementation.”
“Financial institutions must ensure consistent knowledge and processing capabilities across all touchpoints, while government education efforts need to support multiple pathways rather than favouring any single approach,” Johnson said.
The research showed strong public support for the government’s housing intervention, with 56 per cent of total respondents having a positive sentiment towards the First Home Guarantee policy.
In comparison 30 per cent of the surveyed remained neutral or undecided on the scheme, while 14 per cent felt “somewhat” or “very” negative towards the scheme.
Johnson said the data indicated broad awareness and formed opinions on the policy.
“The strong positive sentiment spans beyond just eligible first home buyers, indicating the policy resonates with broader public expectations about government intervention in housing affordability challenges,” Johnson concluded.
