Introduction
If you’re planning to buy your first home in 2026, the good news is you may be entering one of the most favourable markets in years. With major banks like NAB and Westpac cutting fixed rates, BOQ’s 4.89% deal leading the pack, and the RBA expected to deliver multiple cash rate cuts, affordability is improving.
For first home buyers in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, and Darwin, this means opportunity — but only if you prepare with the right strategy and support.
Why 2026 Could Be Your Year
1. Sub-5% Rates Are Back
Eighteen lenders already offer fixed rates under 5%, with more expected to follow once the RBA delivers further cuts. Lower repayments make servicing a loan easier for first-time buyers.
2. Government Incentives Continue
From the First Home Guarantee (5% deposit, no LMI) to state-based stamp duty concessions, 2026 buyers will have access to multiple support schemes.
3. Investor Lending Trends
Investor demand is rising again, but the gap between owner-occupier and investor lending has narrowed, meaning first home buyers won’t be as heavily outbid as in previous booms.
Deposit Strategies for 2026
The old 20% deposit target isn’t realistic for most buyers. Instead:
- Use government schemes to enter with 5% or even 2% deposits (for single parents).
- Consider family guarantee loans if parents can help.
- Work with a broker to calculate whether paying LMI is worth entering the market sooner.
Capital City Outlook for First Home Buyers
- Sydney: Even small rate cuts help improve serviceability in a high-priced market.
- Melbourne: Fierce lender competition benefits new borrowers.
- Brisbane: Population growth and affordability make it an attractive entry point.
- Perth: Property prices are still rising, so 2026 buyers should move fast.
- Adelaide: Lower loan balances + sub-5% rates create excellent affordability.
- Hobart: Slowing growth allows time to shop for the right property.
- Canberra: Stable employment supports first home buyer approvals.
- Darwin: Regional lenders offer flexible policies for entry buyers.
Real Example: Sarah & Tom in Melbourne
“We wanted to buy in 2026 but assumed we’d need a 20% deposit. Our broker showed us the First Home Guarantee and lenders offering 5% loans at under 5% interest. Now, instead of waiting, we’re on track to buy within 12 months.”
How Brokers Help First Home Buyers
- Compare 50+ lenders to secure the best deal.
- Identify lenders offering the most generous first home buyer policies.
- Manage grant and concession applications.
- Explain LMI and offset accounts in plain English.
- Provide a clear pathway to long-term financial goals.
Practical Steps to Prepare for 2026
- Check Your Credit – Lenders will scrutinise your history closely.
- Start Saving Smart – Every dollar in savings can boost approval chances.
- Get Pre-Approved Early – Know your borrowing power before the search.
- Engage a Broker – Leverage their expertise to avoid delays and pitfalls.
Why Waiting Could Cost You
- If rates fall further, demand may spike and push prices up.
- Some government schemes have limited places each year.
- Early planning gives you flexibility to act quickly when the right property appears.
📅 Book Your Free, No-Obligation Chat
At Money Tree Mortgage Brokers, we specialise in guiding first home buyers. We’ll compare 50+ lenders, explain your options, and show you how to secure the support you need to buy your first home in 2026.
