First home buyers cash in + Inflation rises + Qld leads nation
First home buyers who used the expanded 5% Deposit Scheme have collectively avoided an estimated $1.4 billion in lender’s mortgage insurance (LMI) costs over the past year.
That’s according to new federal government figures, which show 102,594 first home buyers have used the scheme since it was expanded on 1 October 2025.
The scheme allows buyers to enter the market with a deposit as small as 5% without paying LMI, which would normally be an additional cost for many borrowers purchasing with less than a 20% deposit.
For someone purchasing the national median-priced home with a 5% deposit, the government estimates the LMI saving at around $23,700.
That doesn’t make buying a first home easy, but it can substantially reduce the upfront hurdle for buyers who qualify.
Inflation rises, putting pressure on interest rates
The latest inflation figures show why the Reserve Bank of Australia (RBA) remains concerned about price pressures.
Annual inflation rose from 3.5% in July to 4.0% in August, according to the Australian Bureau of Statistics.
A major contributor was fuel. Automotive fuel prices jumped 14.8% in August as higher global oil prices combined with the unwinding of the remainder of the federal government’s fuel excise relief.
Housing was another significant contributor, with prices increasing 5.7% over the year.
At the same time, trimmed mean inflation remained unchanged at 3.6% for the third consecutive month, suggesting underlying inflation did not accelerate alongside the headline figure.
The RBA raised the cash rate to 4.60% at its September meeting and said inflation remained too high. The August figures suggest the battle against inflation is far from over, although the stability in underlying inflation provides some welcome context.
Investment helps Queensland claim top spot
Strong housing and business investment has helped Queensland become Australia’s top-performing state economy.
Queensland climbed to first place in CommBank’s latest State of the States rankings, ahead of South Australia, Western Australia and New South Wales.
The Sunshine State ranked among the top three nationally on five of the six measures assessed.
One of its standout results was dwelling investment, which increased 16.8% over the year – the strongest growth of any state or territory. Business investment also rose a healthy 9.0%.
CommBank economist Harry Ottley said Queensland’s rise was about “consistency rather than one single standout result”.
