Expanded home guarantee + Brokers hit new high + Sellers enjoy record profits
The First Home Guarantee has been expanded as of 1 October. It now includes unlimited places, no income restrictions and higher property price caps. That means more first home buyers can enter the market with a 5% deposit and avoid lender’s mortgage insurance.
New research from Cotality explores whether it makes financial sense to buy sooner with a smaller deposit, or wait longer to save the full 20%.
The catch with a 5% deposit is that you borrow more – and pay more interest over time. But that cost may be outweighed by the savings from escaping the rental market earlier.
Since 2020, national rents have increased by $200 per week, or more than $10,000 per year.
That adds up. In Sydney, for example, using the scheme could mean buying 12 years earlier and saving $502,000 in rent.
The scheme won’t suit everyone, but for renters in expensive markets, it could open the door to ownership sooner, with big long-term savings.
Broker market share climbs to record 77.6%
The mortgage broker channel continues to dominate the Australian home loan market.
Brokers facilitated 77.6% of all new residential loans in the June 2025 quarter – the highest share on record, according to data from Cotality for the Mortgage & Finance Association of Australia (MFAA).
Market share has now risen by more than 10 percentage points in just two years. In June 2023, broker share sat at 67.2%.
The value of new loans facilitated by brokers also rose to $121.58 billion, a 21.46% jump from a year earlier and a 31.3% lift on June 2023.
MFAA CEO Anja Pannek said the figures show Australians continue to choose brokers for guidance and support. “This result continues to reflect Australians’ clear choice to work with their mortgage broker as they navigate their home financing journey.”
Sellers bank record profits despite small rise in losses
It was another strong quarter for property sellers, with the latest Pain & Gain report from Cotality revealing $36.6 billion in resale profits during the three months to June.
Nationally, 94.8% of resales made a nominal gain, down slightly from 95% in the March quarter but still well above the 10-year average of 91.5%. The median profit hit a record high of $315,000.
Loss-making sales rose modestly to 5.2% of resales, with nearly 60% of those losses concentrated in Sydney and Melbourne units. Darwin also recorded a high share of loss-making sales at 20.6%.
By contrast, Brisbane was the best-performing capital city, with 99.7% of resales turning a profit and median gains reaching $400,000. Regional sellers also outperformed the capitals, with 96.4% of sales in the black.
The numbers highlight the continued strength of the market – particularly for long-term owners – even as patchier results emerge in some segments.
