Australians are buying houses later in life
A recent article revealed that people are buying their first home later in life – and therefore, will still be paying off their mortgage into retirement.
The new 5% deposit under the First Home Guarantee Scheme means that aspiring homeowners can enter the market sooner, which is great news. We’re already seeing first-time homeowners flock to the Adelaide Hills market (as mentioned in this month’s market update).
With Mount Barker’s median house price of $750,000, the typical 20% deposit would have required a down payment of $150,000. Now, under the 5% deposit, it’s $37,500. This leaves a much larger portion of the mortgage left, rather than a big chunk being paid off in full at the start.
According to Westpac, one in five first-time homebuyer loans issued nationally over the past year were to buyers over 40. The average first-time homeowner age has also increased, from age 32 in 2020 to age 34 in 2025.
On the other end, data shows that over half (54%) of homeowners aged 55-64 are still paying off their mortgage.
With how hot the market is, and has been, it’s not uncommon for people to enter the market in their 40s (as supported by the numbers), which could see them paying off their mortgage into their 70s. This will impact future retirement plans and financial security, at a time when there should be no fewer worries.
Tips for first-home buyers
We recognise this is a nuanced issue. Time in the market is more important than timing the market. But it’s been harder for first timers to break in, especially since the pandemic. There’s no one-size-fits-all approach to buying your first house.
This is why we’re so passionate about coaching our clients and working with them as soon as there’s a desire to buy, not when they’re ready to make a move. Because in this market, things take time.
As suggested in this first-time homeowners guide we created as a resource, it’s best to start planning 12- 24 months out. Engage a real estate agent earlier than you think and assemble your property team. It’s never too early to discuss the best buying strategy.
Here are some other tips for aspiring homeowners:
- Get clear on your numbers: Your property value range, deposit, monthly mortgage budget, and additional ownership costs.
- Be flexible on your location: Focus on a radius or region, rather than a specific suburb. Shortlist geographical ‘pockets’ of the Hills you like and consider adjacent areas to popular suburbs.
- Organise your documents: Make sure you’re ready to make a quick move, if an opportunity arises. This is especially important if you’re in our off-market network.
Momentum and action are powerful motivators, especially in this market. Getting clear on your lifestyle goals and having a strategy/timeline in place to help you achieve it is most critical. Be flexible, but focused, because it might take a little longer than expected.
Build a relationship with your real estate agent so they think of you if/when something suitable comes up. This is what we do for our clients. We can work with you across all the years, lifestages, and postcodes.
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