New data from CommBank reveals a growing trend of first home buyers purchasing property alone or seeking government assistance.

The data shows that 40% of first home buyers purchased a property alone in the first six months of 2024, a significant increase from 35% in 2019. Additionally, the proportion of first home buyers using government-funded guarantees has seen a notable rise in recent years, with a 45% increase between FY21 and FY24.

The national average first home loan size in Australia was $497,692 in FY24. However, there was a noticeable disparity between metro and regional first home buyers, with the average home loan size for metro buyers being $529,642 compared to $403,203 for regional buyers.

Dr Michael Baumann, Executive General Manager Home Buying at CBA, commented on the trend, “With property prices rising consistently and the current cost of living pressures, it is not surprising to see first home buyers looking at all of the options available to them – be it via innovative loan types, loan policy or government grants and incentives – in order to acquire their first home.

"We know that on average, regional properties are cheaper than metro-based dwellings and often sit on larger land lots – which could be attractive especially for some customer segments. Given the greater level of housing affordability in the regions, these areas often provide first home buyers with the perfect opportunity to take their first step into the market."

CommBank, an active participant in government guarantee schemes, has assisted thousands of first home buyers in accessing the appropriate grants or taking advantage of their innovative product solutions. Its solutions include Property Share, a product that allows home buyers and investors to split the cost of buying a home with family or friends while retaining individual control of their finances.

The average loan to value ratio (LVR) for regionally based first-time buyers was 86% in FY24, higher than the 82% average LVR for those who purchased in the cities. This indicates a higher level of borrowing relative to the value of the property among regional buyers.

“As Australia’s biggest lender, with a footprint that stretches right across the country, we are well placed to help first home buyers achieve their property ambitions, regardless of where they are looking to buy,” said Dr Baumann.

“We can provide customers with access to a range of competitive products, and tools to help them in their home buying journey. Home Hub – located in the CommBank app – is just one of the tools property buyers can leverage to make their home buying experience more streamlined and simple," concluded Dr Baumann.