Articles

Lower-priced homes are heating up

02/02/2026

If you’re shopping in the ‘affordable’ home bracket, competition may be getting tougher, not easier.

Since the Federal Government expanded the 5% Deposit Scheme in October 2025, Cotality analysis shows homes under the scheme’s price caps have generally outperformed homes above them. In the December quarter, median prices rose 3.6% under the cap versus 2.4% above the cap.

Why would the lower end grow faster?

• Buyers moved early. Some people acted ahead of the official start date to buy before conditions got tighter.
• Borrowing limits are doing the steering. With serviceability still a hurdle, more buyers are gravitating toward properties that feel manageable week to week.

Quick reality check before you rely on the scheme

• Price caps matter (and vary by location).
• Not every lender treats the scheme the same way.
• Your borrowing limit still depends on normal credit checks.

If you’re considering a purchase under the 5% Deposit Scheme cap, contact us and We’ll check eligibility, lender participation and what the repayments look like.