First home buyer market momentum: Insights and opportunities for brokers

Q. What should brokers know about current activity levels in the first home buyer market?

There’s strong momentum in this segment of the market. New NAB data shows lending to first home buyers has jumped 16 per cent since February, while lending to all owner-occupiers is up 32 per cent. Victoria is leading with a 28 per cent rise, followed by Western Australia (+22 per cent) and Queensland (+21 per cent).

These figures highlight real opportunities for brokers to grow their client base in this recovering segment.

Q. What’s driving this renewed first home buyer momentum?

Across Australia, sentiment toward the housing market is improving, raising expectations for increased buyer activity through the typically quieter winter months. NAB’s Residential Property Survey confirms property professionals anticipate continued momentum, especially among first home buyers.

At NAB, we’ve seen increased activity from our customers following recent reductions to both fixed and variable interest rates, which have helped more buyers feel confident about entering the market. Government initiatives, like the expanded Home Guarantee Scheme that we are proud to support, also help eligible buyers purchase with just a 5 per cent deposit, and no need for lenders mortgage insurance.

Although new home sales to first home buyers dipped slightly in the March quarter following a two-year high in December 2024, many experts expect this segment to rebound over the coming year. In states such as NSW and Western Australia, strong demand continues, with affordability pressures encouraging some buyers to explore alternative pathways to home ownership such as rentvesting.

Q. Is ‘rentvesting’ just a buzzword or a genuine strategy brokers should understand?

Rentvesting is a genuine and increasingly common strategy, especially in affordability-challenged markets like NSW and Western Australia. It allows buyers to rent where they want to live while investing in property elsewhere, helping them enter the market sooner.

For brokers, this trend presents an important opportunity. Many first-time buyers don’t fully understand these strategies or how quickly pre-approval can be secured. Brokers who educate their clients and help them get into home ownership sooner build stronger, long- term relationships.

Q. Should brokers expect a spike in spring?

I think confidence is strengthening. With the current market conditions and lower interest rates giving buyers more borrowing power, first home buyers are likely to feel more confident. However, affordability constraints and continued cost-of-living pressures are keeping housing price growth moderate overall. This balance creates a less competitive environment where buyers can make more thoughtful decisions.

Q. How do brokers help support nervous first-time buyers?

Brokers can position the current market as a calm, strategic window for first-time buyers, particularly those who are prepared. Buyers may be under less pressure to make decisions, but speed and preparation are still key. NAB continues to focus on digital tools and streamlined processes designed to make approvals faster and easier for brokers and their customers. Brokers play a critical role in helping clients get market-ready by guiding them through the process early, ensuring documentation is in place, and setting clear expectations.

Brokers who focus on early preparation and use NAB’s streamlined systems can help clients act with confidence and secure the right property when the opportunity arises.

With brokers accounting for 76.8 per cent of market share for new residential home loan submissions (as per MFAA reporting of the March quarter), it’s clear brokers are key partners in helping first home buyers navigate the market successfully.