Western Australian and Queensland have the most active first home buyers in the country, while rising prices continue to stump buyers in New South Wales.

According to home loan approval data released by Mortgage Choice, buyers in Western Australian and Queensland accounted for almost one in five loans written throughout February.

In contrast, first home buyers in New South Wales accounted for less than one in 20.

Mortgage Choice spokesperson Jessica Darnbrough said high median dwelling prices in New South Wales were preventing first home buyers from entering the market.

“This is largely unsurprising when you consider that the state’s capital, Sydney, boasts the country’s highest median dwelling price,” she said.

“In addition, New South Wales no longer offers grants or stamp duty concessions to those first home buyers purchasing an established property.”

States like Queensland were seeing healthy first home buyer activity due to stamp duty concessions for those looking to purchase an established property.


“Our research shows more than 70% of first home buyers who purchased their property within the last two years bought an established dwelling. As such, it isn’t surprising to see first home buyer participation stronger in the states that not only offer concessions or grants.”

First home buyers in New South Wales accounted for just 3.85% of all loans written in February, while Western Australian and Queensland showed participation rates of 19.57% and 17.00% respectively.

“On average, our data shows first home buyers account for just over 12% of all loans written – down from 16% in 2014.”

Victoria was the only state showing an increase from 2014, with first home buyer’s accounting for 16.99% of loans written. 


Table: New home loan approval data – February 2015

  National NSW VIC SA QLD WA
2015 12.42% 3.85% 16.99% 4.68% 17.00% 19.57%
2014 15.76% 5.42% 13.70% 15.89% 19.51% 24.29%

Source: Mortgage Choice