5-year goal: 1-in-3 Gen Zs planning to buy a first home

Gen Z may be known for being tech savvy, but they’re also showing their smarts when it comes to home buying, with a surprisingly large number preparing to buy their first home before the end of the decade. Here’s how Gen Zs are making their home-buying plans happen.

They don’t call it the ‘great Australian dream’ for nothing.

Owning a home remains a leading goal for many Australians and a recent Westpac survey found more than one in three (35%) Gen Zs – that’s chiefly people aged in their 20s – plan to buy their first home in the next five years.

That’s a 5% increase since the start of the year, and signals a growing wave of confidence among Gen Z home buyers.

What’s driving the jump in home-buying optimism?

Let’s take a look.

Why more Gen Zs are determined to buy a home

First and foremost, almost two in five (37%) say they want to be more independent. Fair enough too – years of living in the family home, or answering to a landlord, can make a place of your own very attractive.

More than one in three (34%) Gen Zs are keen to buy a home as a way of feeling more financially secure.

About the same proportion (32%) simply want to get off the rental treadmill. Makes sense. Why pay rent when you could be paying off your own home?

What they’re doing to meet their goal

The overwhelming majority of Gen Z buyers – about eight in ten – are boosting their deposit by fine-tuning their lifestyle, making fuss-free changes such as cutting back on food deliveries and other non-essentials to save money.

Faced with a shortage of homes listed for sale, Gen Zs are also playing it smart by broadening their search. Four in five (80%) say they’re happy to consider suburbs they hadn’t previously thought of.

Gen Zs are also keeping their options open when it comes to the type of home they’ll buy.

Plans to buy an apartment, which can have an affordability edge, have jumped 2% since the start of the year, while interest in buying a house has cooled slightly.

More than half (55%) of Gen Z buyers are even considering rent-vesting – making their first property an investment, while choosing to rent where they want to live.

What deposit are Gen Zs aiming for?

There’s no getting around the fact that today’s high property prices can be a hurdle when it comes to saving the traditional 20% deposit.

So Gen Z buyers are leaning towards a different solution: buy with a smaller deposit.

Over half (53%) of 20-something first home buyers are moving ahead with plans for a deposit of 10% or less.

The good news is that this has become a lot easier thanks to the newly expanded Australian government 5% Deposit Scheme. It lets eligible buyers get into the market with as little as a 5% deposit and zero lenders mortgage insurance.

Let’s develop your first home strategy

Buying your first home doesn’t have to be a pipedream.

With a clear savings strategy, the backing of government support schemes, and a home loan that is a great match for your needs, home ownership can be achievable.

Contact us today to start the path forward to buying your first home. You could be in a place of your own sooner than you think!

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Separating? Understand your home loan options

Nicole Kidman and Keith Urban are making headlines, having reportedly called time on their 19-year marriage. If you’re also facing a relationship break-up, it’s important to know where you stand on practical issues, such as how to hold onto the family home, if that’s your goal.

While Keith and Nicole are likely to have a multi-million dollar property portfolio to divvy up, most Australians have just one family home.

That doesn’t necessarily make matters less complicated, especially as our home tends to be the jewel in the crown of household assets.

Some couples choose to sell their home, pay off the mortgage and go their separate ways.

However, if you want to hold onto the family home, the situation may be more complex.

Determining your home’s value

Unless you and your ex plan to sell your home to a third party as part of your separation (which will very quickly tell you exactly what the place is worth), the first step is to get a clear idea of the property’s value.

Knowing the current market value of your home can let you know how much you owe your ex if you plan to buy them out. Or alternatively, it can clarify how much you are owed if your former spouse wants to buy out your stake in the family home.

A local real estate agent can provide a market appraisal. But the figure you’re quoted has no legal standing, and the agent may bump up the value if they believe a listing could be on the cards.

There are websites that offer free valuations. However, these may not be entirely accurate as they are based on past property sales, which may not reflect your home’s value.

The most accurate way to know what your home is worth is by arranging a formal valuation by a licensed valuer.

This will likely come at a cost but the upside is an independent and accurate valuation of your home.

Funding your home if it’s still under mortgage

If you’re keen to hold onto your home, you’ll need to work out how to fund it if the property is still under mortgage.

You can’t normally just take over the repayments on a mortgage if the loan is held in your former spouse or partner’s name. And frankly, this would involve a leap of faith by your ex as any missed repayments could impact their credit score.

So it may be necessary to apply for a loan of your own.

As your broker, we will walk you through the process. A key factor that lenders will consider is: will you be able to manage regular loan repayments?

If you are earning a wage or salary, or relying on Centrelink benefits, spousal maintenance or even child support payments to help meet the mortgage, you’ll likely be asked to provide evidence of this income.

Alternatively, you may be able to refinance your current home loan so that it is held in your name only.

There are a variety of options available – speaking to us at an early stage can help you select the option for your situation.

Separation is a time for support and guidance

Amid the raw emotions of a break-up, it’s important to have support and guidance from trusted professionals.

In some areas, a lawyer may be your first port of call. In others, such as finance, we’re here to help.

So if you’re facing the end of a relationship, get in touch today for a clearer idea of your home loan options. It could help you start the next phase of your life.

Has your borrowing power increased in 2025?

If you haven’t checked your borrowing power recently, it might be worth another look. A lot has happened in 2025, and your borrowing capacity could be higher than you realise.

It’s been a busy year on the money front.

Tax cuts, a couple of rate cuts, and reductions in HECS debts have all potentially been a plus for our financial wellbeing.

That’s not all that’s improved.

There’s a decent chance your borrowing power has enjoyed a boost, which could make now a good time to revisit your borrowing capacity.

What shapes your borrowing power?

Your borrowing power, or as lenders like to call it – your borrowing capacity – is the amount a lender will let you borrow to buy a home.

Each lender has their own way of calculating borrowing power.

But it mainly boils down to three things: your income, your household expenses, and any other debts you may have that’ll need to be repaid alongside a home loan.

The important thing to know is that your borrowing power isn’t set in cement.

It can change over time, and recent months have seen several events that are likely to have increased your borrowing capacity.

Here are 4 reasons why your borrowing power could be on the rise.

1. Interest rates have fallen

Two official rate cuts this year have helped to lower home loan interest rates.

This time a year ago, the average variable rate on new loans was about 6.3%. Today it’s closer to 5.8%.

Lower rates mean lower monthly home loan repayments. This flows through to higher borrowing power.

How much higher?

Canstar says the February and May rate cuts could have added $23,000 to the borrowing power of a single person on the average wage. A couple may have seen their borrowing power increase by $40,000-$45,000.

2. Tax cuts have kicked in

A year ago we were celebrating the arrival of Stage 3 tax cuts that put money back in our hip pockets.

Tax cuts can have another happy side effect.

Paying less tax can mean more after-tax income. This converts to higher borrowing power.

The uptick can be surprisingly generous.

According to Compare the Market, the Stage 3 tax cuts could mean a couple with no kids has seen a $47,000 increase in their borrowing capacity.

3. Wages are up

Around 2.9 million Australians received a pay rise from the start of July thanks to a 3.5% increase in the National Minimum Wage and award wages.

Even if you’re not covered by these wage rises, the boss may have agreed to give you a pay rise from 1 July.

Or a new job could see you earning more.

Talk to us to know how a bigger pay packet may have impacted your borrowing power.

4. Lenders are treating HECS-HELP debts differently

In the past, lenders have typically included student debt – that’s HECS-HELP loans – in their loan serviceability calculations.

In 2025 however, lenders have been given the flexibility to overlook HECS-HELP repayments as long as the outstanding student debt is close to being paid off.

If this sounds like you, your borrowing power may now be higher than you expect.

Steps you can take to potentially lift your borrowing power

Keen to boost your borrowing capacity further? It may be done by following some, or all, of the steps below:

Reduce regular expenses: lenders take household expenses into account when deciding how much you can borrow. Trimming back a few regular bills can make a difference to your borrowing power. Consider cutting back subscriptions for apps and streaming services, the gym, or shop around for cheaper power or phone plans.

Cut your credit card limit: lenders assess your borrowing capacity based on your card’s credit limit, not the outstanding balance. As a rough guide, every $10,000 of credit card limit can reduce your borrowing power by about $50,000. If you’re not keen on cancelling a card altogether, consider contacting the card issuer to lower the credit limit.

Keep a lid on other debts: the more you can cut back other debts, such as personal loans or car loans, the higher your borrowing power can be. Sure, it’s not easy paying down debt. But keep your eyes on the prize – it could take you closer to buying your first, or next, home.

Get to know your number

Just because you can borrow more, doesn’t mean you should borrow more.

Even so, it’s always worth knowing your personal borrowing capacity – it’s a key number that can help you achieve your property goals.

Get in touch if you’d like to find out your current borrowing power.

We can share ways you can improve your borrowing capacity, and explain how you can make the most of it to apply for a loan that matches your needs.