Average home loan up 69% | Low-deposit scheme expands | Buying vs renting
This month's newsletter covers everything from buying costs and refinancing savings to property assistance schemes and electric vehicle trends. The stories include:
Loan sizes & repayments rise
Govt extends First Home Guarantee
Where it's cheaper to buy than rent
EVs no longer out of reach
Loan sizes & repayments rise
Australian mortgage repayments have nearly doubled over the past decade – rising from an average of $2,214 a month in June 2015 to $4,383 in June 2025, according to a Mozo analysis of Australian Bureau of Statistics data and Mozo home loans data. That extra $2,169 equates to about $71 more every day for the average borrower.
Loan sizes have ballooned too – up 69%, from $389,939 in 2015 to $659,922 in 2025 – driven largely by soaring property prices and higher interest rates.
Govt extends First Home Guarantee
Saving a 20% deposit is one of the biggest barriers to home ownership – especially for young buyers and renters living in capital cities. But there’s good news: the federal government has just released 50,000 new places under the Home Guarantee Scheme for the 2025-26 financial year.
This program allows eligible buyers to purchase a home with as little as 5% deposit (or 2% for single parents), without needing to pay lender's mortgage insurance, potentially reducing their upfront costs by tens of thousands of dollars.
The newly released places include:
35,000 spots under the First Home Guarantee (for first home buyers).
10,000 under the Regional First Home Buyer Guarantee (for regional first home buyers).
5,000 under the Family Home Guarantee (for single parents).
Where it's cheaper to buy than rent
Domain’s latest research has identified select locations across Australia where it’s now cheaper to buy a home than rent one – but those suburbs are becoming increasingly rare.
For houses, just 6.3% of suburbs in capital cities and 27.3% in regional locations were found to favour buyers. For units, the figures were 14.5% in capital cities and 44.3% in regional locations.
That said, home ownership comes with two key advantages – security of tenure and the potential for long-term capital growth.
EVs no longer out of reach
Electric vehicles (EVs) are becoming more accessible to Australian drivers, thanks to a combination of falling prices, government incentives and more competitive financing options.
After years of being priced out of reach for many households, the cost of EVs has started to decline. A growing number of lower-priced models have entered the market in recent months, giving buyers more choice under the $60,000 mark – a key threshold for many government rebates and fringe benefits tax exemptions.
At the same time, more lenders are offering car loans specifically tailored for EVs, often with more favourable terms than traditional car finance. These loans may come with lower interest rates or added flexibility, helping reduce the total cost of ownership over time.
Running costs for EVs also remain significantly lower than for petrol vehicles – particularly when charged at home – which can lead to big savings over the life of the loan.
If you’re considering buying an EV, now could be a smart time to make the switch. I can help you compare finance options and work out whether an electric vehicle fits your budget and long-term goals.