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First home buyer approvals have reached their highest share on record, pointing to renewed confidence and momentum among younger entrants to the market.
Total mortgage approvals over the month of June were 21.1 per cent higher than in June 2024.
First home buyers now make up 13 per cent of all mortgage approvals, above the average of 11 per cent and the largest portion since recording began in 2022.
As revealed in LMG’s National Mortgage Report, June saw a massive spike in borrower activity.
Approvals jumped 5 per cent throughout the month, driven by FHBs, which grew 35 per cent.
Of these FHBs, the majority (53 per cent) were owner-occupiers, while 34 per cent were investors.
Compared to June 2024, there was a 36 per cent rise in FHBs, 25 per cent in investors, and 15 per cent in upgraders.
The June quarter actually saw a decrease in approvals, falling 2.5 per cent from the previous quarter.
However, this was due to stagnant activity in April and May. June picked back up again and carried the quarter’s mortgage approval activity.
LMG said it was hard to pinpoint the cause behind the spike, but believes a “post-election bounce” and rate cuts are likely to have fuelled demand.
Among the confident FHBs, Victoria led the charge. In fact, 39 per cent of all applications came from the state. Of the total, FHBs made up 18 per cent of Victorian applications.
Queensland trailed with 21 per cent of FHB share throughout June coming from the Sunshine State. FHBs accounted for 13 per cent of total Queensland applications.
NSW trailed with just 18 per cent of the total FHB share, and just 8 per cent of the total NSW applications were FHBs.
The regions with the highest percentage of FHB applications were Far North Queensland (22 per cent), rest of Western Australia (21 per cent), West Melbourne (21 per cent), Hobart (21 per cent), Perth (20 per cent), and Melbourne East (19 per cent).
The areas with the largest monetary value of FHB mortgage applications were Melbourne East, Melbourne Inner, Greater Brisbane, Melbourne West, Coastal Sydney, and Greater Western Sydney.
Victoria and Queensland continue to be hotspots for borrower activity, as inflated NSW prices push people out.
Recent data revealed that 20.5 per cent of the total loans over the last financial year came from Victoria.
Queensland trailed, making up 20.3 per cent of the total. NSW followed, making up 19.8 per cent of the total.
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