Top tips to understand First Home Buyer Statistics

Understanding what other first home buyers are doing gives you a clearer view of where you stand. The numbers behind deposit sizes, loan structures, and scheme participation reveal patterns that can shape your own decisions.

How Many First Home Buyers Are Accessing the 5% Deposit Scheme

Approximately 45% of first home buyers nationally are now using the Australian Government 5% Deposit Scheme. In Victoria, participation rates sit slightly higher at around 48%, driven by the scheme's removal of income caps and annual place limits from October last year. Box Hill buyers benefit from the capital city property cap of $950,000, which covers most apartments and some townhouses in the suburb. The scheme eliminates Lenders Mortgage Insurance, which can otherwise add $15,000 to $30,000 to upfront costs depending on deposit size and purchase price.

Consider a buyer purchasing an apartment near Box Hill Gardens. With a 5% deposit, they avoid LMI entirely and can allocate those savings toward furniture, stamp duty, or offset funds. The same buyer with a 10% deposit outside the scheme would still face LMI unless they reached 20%. Participation in the scheme is handled through participating lenders, not directly with Housing Australia, so confirming your lender's product features before applying is necessary.

Median Deposit Sizes Across Victoria

The median deposit for Victorian first home buyers currently sits at 11.3% of the purchase price. This figure includes buyers using the 5% Deposit Scheme, those contributing 10% with family assistance, and a smaller group entering with 15% to 20% from long-term savings or the First Home Super Saver Scheme. Buyers in Box Hill often fall within the 8% to 12% range, reflecting a mix of scheme access and modest gift deposits from family.

Deposit size directly affects borrowing capacity and loan structure. A buyer contributing 8% with scheme support may have more cash available for an offset account setup, which reduces interest from day one. A buyer stretching to 15% without the scheme may have a lower loan balance but less liquidity post-settlement.

First Home Buyer Grant and Stamp Duty Concession Uptake in Victoria

Around 62% of Victorian first home buyers purchasing new homes claim the $10,000 First Home Owner Grant. The grant applies only to new or substantially renovated homes valued up to $750,000, so buyers in Box Hill purchasing off-the-plan apartments near Whitehorse Road or new townhouses in smaller developments typically qualify. Established home buyers do not receive the grant but can still access stamp duty relief.

Victoria's stamp duty exemption applies to properties valued up to $600,000, with a sliding concession available up to $750,000. Approximately 71% of first home buyers in Victoria use the exemption or concession, a figure that includes both new and established purchases. In Box Hill, established apartments valued between $500,000 and $600,000 qualify for full exemption, while properties between $600,001 and $750,000 attract partial relief. Buyers purchasing above $750,000 pay standard duty rates, which at that threshold start at approximately $40,000 and climb with property value.

Fixed vs Variable Rate Preferences Among First Home Buyers

Current data shows 38% of first home buyers are selecting fixed rate loans, 41% are choosing variable rate loans, and 21% are splitting their loan across both. Fixed rate selections have declined from a peak of 64% two years ago when rates were at historic lows. Variable rate loans now offer offset account access and redraw flexibility, which appeals to buyers expecting irregular income or planning to make extra repayments.

In our experience, Box Hill buyers often favour a split structure. A typical arrangement might involve fixing 50% to 60% of the loan for rate certainty and leaving the remainder variable to take advantage of an offset account. This approach suits buyers working in professional services or business ownership, where income variability and bonus payments are common. The flexibility to deposit lump sums into an offset without restriction can reduce total interest paid over the life of the loan.

Average Time from Pre-Approval to Settlement

The median time from pre-approval to settlement for Victorian first home buyers is currently 14 weeks. This period includes property search, contract exchange, cooling-off, finance approval, and settlement. Box Hill buyers purchasing off-the-plan properties face longer timelines, often 18 to 24 months from contract to completion, depending on construction schedules and developer progress.

Pre-approval validity typically lasts 90 days, though some lenders extend this to 120 days. Buyers searching in competitive precincts near Box Hill Central or along Station Street often secure pre-approval before attending auctions or making offers. Pre-approval does not lock in an interest rate, but it confirms borrowing capacity and speeds up formal approval once a contract is signed.

What Share of First Home Buyers Receive Family Assistance

Approximately 34% of first home buyers nationally receive some form of family assistance, either as a cash gift, a guarantee, or both. In Victoria, that figure sits marginally lower at 32%. Gift deposits must meet lender criteria for genuine savings or be declared as non-repayable gifts with supporting documentation. Family guarantees, where a parent uses their own property equity to reduce or eliminate LMI, are used by around 9% of first home buyers.

A buyer in Box Hill receiving a $30,000 gift from parents can combine that with their own savings to reach a 10% deposit without needing the 5% Deposit Scheme. Alternatively, the same buyer might use the gift to cover stamp duty and settlement costs while entering the property with a smaller deposit under the scheme. Lenders require a statutory declaration from the gift provider confirming the funds are not a loan and do not need to be repaid.

How Loan Structures Differ Between Apartments and Houses

First home buyers purchasing apartments are more likely to select interest-only periods during the initial loan term compared to those buying houses. Approximately 14% of apartment buyers structure part of their loan as interest-only for the first one to three years, compared to 6% of house buyers. This is partly driven by investors purchasing new apartments and partly by owner-occupiers managing cash flow in higher-density developments where strata fees add to monthly outgoings.

Box Hill has a high proportion of apartment stock, particularly around Station Street and along Whitehorse Road near Box Hill Central. Buyers in these buildings face quarterly strata fees ranging from $1,200 to $2,800 depending on building age, amenities, and sinking fund contributions. Structuring a portion of the loan as interest-only in the early years can ease cash flow pressure, though total interest paid over the loan term will be higher unless offset balances are maintained or the loan is switched to principal and interest before the interest-only period ends.

Call one of our team or book an appointment at a time that works for you. We work with first home buyers across Box Hill and the surrounding suburbs, and we can walk through how current data applies to your situation, your deposit, and your borrowing capacity.

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