A couple discussing their home loan with a mortgage broker. Picture: iStock.
Mortgage applications soared 10.3 per cent in the last quarter, the strongest growth since 2021.
And it would seem that first home buyers are among the most hungry for a home, with that cohort recording its largest increase since early 2022, according to the latest Equifax Quarterly Consumer Credit Insights report.
However, total mortgage accounts declined year-on-year for the second consecutive quarter, likely driven by an affordability threshold challenge.
“Despite these challenges, specific geographies continue to see FHB demand,” the report said.
And there are certain suburbs in each state that are proving red-hot for first-time buyers.
In NSW, those suburbs include Parramatta (median home price of $704,000), Blacktown ($728,000), Castle Hill ($779,000), Hurstville ($719,000) and Marrickville ($720,000).
In Queensland, the first home buyer hotspots are Pimpama ($660,000), Southport ($680,000), West End ($617,000), Coorparoo ($665,000) and Palm Beach ($720,000).
The Victorian hotspots are Melbourne ($585,000), Richmond ($665,000), Tarneit ($594,000), Southbank ($615,000) and South Yarra ($630,000).
Median home prices refers to houses and units combined.
“The Equifax FHB Demand Hotspots show strong interest in established property corridors in Sydney, Southeast Queensland, and Melbourne,” Equifax chief solution officer Kevin James said.
“While we have seen an increase in property-buying intention, specifically in the Gen Z and Millennial demographic, housing affordability was cited as a primary concern in the 2025 iCIRT Consumer Research.
“It’s important to remember that while First Home Buyers have access to incentives such as the Government’s 5 per cent Deposit Scheme, it is not enough to close the gap for many.
“With rising house prices demanding higher LVRs (loan-to-value ratios), the barriers to entry persist – regardless of the applicant’s deposit size or credit quality.”
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While the First Home Buyer Demand Hotspots track areas of surging applications and median loan amounts, Equifax has also mapped the intersection of intent versus affordability, revealing ‘Opportunity Zones’ for First Home Buyers.
In NSW, those opportunities include Leumeah (median home price of $543,000), Forestville ($601,000), Emu Plains ($617,000), Como ($619,000) and Stanhope Gardens ($619,000).
In Queensland, the suburbs to check out include Chapel Hill ($498,000), Holmview ($505,000), Daisy Hill ($509,000), Brassal ($521,000) and Goodna ($530,000).
A townhouse sold for $640,000 in Chapel Hill.
Victorian opportunitie sfor first home buyers include Melton South ($477,000), Burnside ($489,000), Keilor Downs ($492,000), Skye ($520,000) and Roxburgh Park (524,000).
A two bedroom unit in Roxburgh Park recently sold for $362,000
“We know that many Australians, particularly those looking to purchase their first homes, are being priced out of major cities, and we also know that this factor won’t be completely aided by Federal Government incentivisation,” James said.
“Young Australians looking to break into the housing market could consider alternative regions where these government incentives are likely to provide the greatest benefit.
“What’s more, at the same time, for lenders, these suburbs could represent a key growth market for the new First Home Buyer incentive scheme.”
The federal First Home Guarantee schemeallows first-time buyers to purchase a home with a 5 per cent deposit.
But the initiative is not without its critics.
AMP chief economist Shane Oliver said there was already evidence the First Home Guarantee scheme was pushing up prices and the rises were indicative of a “flaw” in the policy.
“Demand-side schemes put upwards pressure on prices. It was to be expected. History tells us first-home buyer schemes result in higher prices,” he said.
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