FIRST-home buyer activity has fallen sharply across Australia this year, with Queensland recording the steepest decline of any state.
Equifax data shows mortgage demand from first-time buyers dropped 20.1 per cent nationally in the year to August, and 22.6 per cent in Queensland.
Rising property prices are part of the problem but borrowing capacity has also shifted quickly as lenders adjust fixed rates independently of Reserve Bank decisions.
Canstar estimates rate changes this year have reduced maximum borrowing capacity by about $35,800 for a single average-income earner and $71,600 for a couple, even where income and savings have not changed.
It is a figure buyers should know before falling in love with a property, rather than discovering it midway through making an offer.
The data also points to a shift in who is entering the market.
Mortgage demand among 18 to 25-year-olds fell 21.7 per cent over the year compared with an 18.1 per cent decline among buyers aged 26 to 35.
For younger Australians, the decision is not only about money.
Recent research found 46 per cent of Australians who do not own a home would choose travel over saving for a deposit in 2026, rising to 51 per cent among under-35s.
Many are also weighing up the personal cost of a full-time career, choosing flexibility and time outside work over pursuing higher incomes.
But the aspiration for home ownership has not disappeared.
Separate research found home ownership, family and security still matter deeply to younger Australians, with more than half cutting lifestyle spending and almost a third taking on extra hours to reach their goal.
At Redlands open homes, that is increasingly reflected in the questions buyers ask.
Rather than stretching to secure a dream home at any cost, buyers are asking earlier about body corporate fees, realistic repayments and commuting costs.
For some, that means considering a different suburb or property type.
The compromise can often prove a better long-term fit.
There is also encouragement for buyers looking at the more affordable end of the market.
Cotality reports recent market softness has been concentrated among higher-priced properties, while more affordable homes have held firm.
The key message for prospective buyers is to get an up-to-date borrowing figure before beginning the search, ask about the 5 per cent Deposit Scheme, and leave room in the budget for life beyond the mortgage.
Note: This is general information only and not personal financial advice. Prospective buyers should speak with a broker or financial adviser before making lending decisions.
