Beginner's Guide to First Home Buyer Statistics

The Numbers That Matter for Rockdale First Home Buyers

First home buyers make up roughly 30% of all new lending nationally, but understanding how that translates to your situation depends on what you're buying and how you're funding it. The data shows patterns in deposit sizes, scheme uptake, and stamp duty savings that directly affect how much you'll need upfront and which options are worth considering.

Rockdale sits within the Sydney metro area, where the Australian Government 5% Deposit Scheme caps purchase prices at $1,500,000 for capital city and regional centres. That means buyers targeting units or townhouses in the suburb can access the scheme without LMI if they meet eligibility requirements. The property must be valued at or below the cap by the lender, and the scheme is accessed through participating lenders only.

How Many First Home Buyers Use Low Deposit Schemes

Around 40% of first home buyers who purchase with a deposit under 20% now use a government-backed guarantee scheme to avoid paying LMI. For a buyer in Rockdale purchasing a unit, the difference between paying LMI on a 10% deposit and using the Australian Government 5% Deposit Scheme can reduce upfront costs by several thousand dollars, depending on the purchase price and lender's LMI rates.

Consider a buyer purchasing at $750,000 with a 5% deposit. Under the scheme, no LMI is payable. Without the scheme, LMI on a 5% deposit loan could exceed $30,000 depending on the lender. The scheme does not cap income, and applications are unlimited, but the lender must approve the loan under their standard credit criteria.

Stamp Duty Savings Under NSW Concessions

NSW offers full stamp duty exemption on properties valued up to $800,000 for eligible first home buyers. Between $800,001 and $1,000,000, a sliding concession applies. Above $1,000,000, standard duty applies.

For a unit valued at $650,000 in Rockdale, an eligible first home buyer pays no stamp duty. For a property at $900,000, the concession reduces duty to approximately $13,000 instead of the standard $34,000. The buyer must move in within 12 months of settlement and occupy the property as their principal place of residence for at least 12 continuous months. This applies to both new and established homes.

Where First Home Buyers Are Purchasing in the Current Market

Data from Housing Australia shows first home buyers are purchasing across established housing stock and new builds, with roughly 60% buying established homes and 40% purchasing new or off-the-plan properties nationally. In suburbs with strong unit supply like Rockdale, established apartments make up a significant portion of entry-level purchases.

Buyers of established homes in NSW can combine the stamp duty exemption or concession with the 5% Deposit Scheme but are not eligible for the First Home Owner Grant, which applies only to new homes valued under $600,000 or land and build contracts under $750,000. Buyers targeting new apartments in Rockdale may qualify for both the $10,000 grant and the stamp duty exemption if the property is valued within the applicable caps.

Average Deposit Sizes and What They Mean for Genuine Savings

The median deposit for first home buyers using the 5% Deposit Scheme is 5%, as expected. For those not using a scheme, the median deposit sits closer to 15% to 20%, driven by buyers aiming to avoid LMI or access better interest rate pricing.

Lenders assess genuine savings as part of the home loan application process. Genuine savings typically need to be held for at least three months and exclude gifted funds in most cases. Buyers can use funds from the First Home Super Saver Scheme, which allows up to $50,000 in voluntary super contributions to be withdrawn for a deposit. Contributions are taxed at 15% rather than marginal rates, making it a tax-effective saving strategy for buyers planning ahead.

Fixed Rate Versus Variable Rate Uptake Among First Home Buyers

Approximately 65% of first home buyers currently choose variable rate loans, with the remainder opting for fixed or split structures. Variable rates allow access to offset accounts, which are not typically available on fixed rate loans. For buyers in Rockdale purchasing units, an offset account linked to a variable rate loan can reduce interest charges by parking savings against the loan balance.

Some first home buyers split their loan, fixing a portion for rate certainty and keeping the remainder variable for flexibility. This structure allows partial access to offset and redraw features while locking in a fixed rate on part of the debt. Rate structures should be discussed with your broker based on your repayment plans and risk tolerance.

How Help to Buy Compares to the 5% Deposit Scheme for NSW Buyers

Help to Buy allows the government to take an equity stake of up to 30% for an existing home or 40% for a new home in exchange for contributing that amount to the purchase price. The buyer provides a minimum 2% deposit. Income limits apply: $100,000 for individuals and $160,000 for couples or single parents. Property price caps vary by postcode.

The scheme cannot be combined with the 5% Deposit Scheme. A buyer in Rockdale earning $95,000 individually could access Help to Buy if the property falls within the applicable price cap for the postcode. The government holds an equity share, meaning the buyer owns a smaller portion of the property initially and must eventually buy out the government's share or sell. For buyers prioritising full ownership from settlement, the 5% Deposit Scheme is the more common choice.

What Pre-Approval Data Shows About Application Timing

Roughly 70% of successful first home buyers obtain pre-approval before making an offer. Pre-approval confirms borrowing capacity and signals to vendors that the buyer has finance in place, which can strengthen negotiation position in competitive markets.

Pre-approval is typically valid for three to six months depending on the lender. Buyers should apply once they have genuine savings confirmed, a clear budget, and a target property type in mind. Pre-approval does not guarantee final loan approval, as the lender will reassess the application once a contract is signed and the property is valued. Buyers should avoid making large purchases or changing employment during the pre-approval period, as these can affect the final assessment.

Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions