Saving for first home: How to beat the FOMO and get into the market sooner

Let's be honest, buying your first home in Australia right now feels a bit like trying to hit a moving target. Just when you think you're getting close to your savings goal, prices seem to creep up again. If you've ever felt that nagging "I need to buy now before it's too late" panic, you're not imagining it, and you're definitely not alone.

The good news? There are more ways into the market than ever before, and a bit of smart planning (plus the right legal advice at the right time) can make a real difference.

The numbers don't lie: here's where things stand in 2026:

Let's start with a quick reality check, because understanding the landscape is the first step to navigating it with confidence.

It now takes the average Australian around 11 to 12 years to save a full 20% deposit for a house. For an apartment, it's closer to 9 years. That's a long time to wait, and it's a big reason why so many young Australians are exploring alternative paths to ownership.

Here in South Australia, the market has been particularly hot. The statewide median house price has climbed to around $875,000, up close to 15% over the past year alone. Greater Adelaide's median dwelling value now sits close to $950,000, with houses pushing past $1 million in over 200 Adelaide suburbs.

On the deposit side, the national average first home buyer deposit is sitting at around $107,000 to $135,000, depending on which data set you look at, and the average first home buyer loan size has jumped to around $607,000 nationally, an 8.5% rise in just one quarter.

It's no wonder Australians are now spending around 45% of their income on average just to cover mortgage repayments. That's up significantly from less than 30% back in 2020.

Sources: Australian Bureau of Statistics (ABS), Finder, Cotality, REISA, RBA

Why does it feel like such a race?

If you've been to an open inspection lately and felt like you were competing in a sporting final, that's because, in many ways, you were.

Tight housing supply across Adelaide means listings are getting snapped up quickly, inspections are packed, and competition is fierce. This is what's driving the property "FOMO" so many first home buyers describe, that anxious feeling that if you don't jump now, you'll be priced out forever.

Here's the thing though: making a big financial decision from a place of panic rarely leads to the best outcome. The smarter move is to understand your options, get good advice early, and make a decision that's right for your situation, not just a reaction to market pressure.

The good news: there's more support available than ever

The first home buyer landscape has shifted quite a bit recently, and largely in buyers' favour.

The Australian Government's 5% Deposit Scheme has been expanded, meaning eligible first home buyers can now get into the market with just a 5% deposit, without paying Lenders Mortgage Insurance (LMI), and without the income caps that used to apply. There's also the Help to Buy Scheme, which offers further support for eligible buyers.

What if you're still struggling to bridge the gap?

For many first home buyers, even with government schemes helping reduce the deposit needed, there's still a gap between what they've saved and what they need.

This is where the "bank of mum and dad" comes in. It's become so common it's almost a standard part of the conversation now. Parents who bought property years ago have often built up significant equity, and many are using that equity to help their kids get a foot on the ladder, sooner.

How does a Guarantor actually help?

A guarantor provides additional security on a mortgage if you don't meet the full deposit requirements as a buyer. This works as a promise to the Lender that they will meet loan repayments and other obligations if the borrower fails to live up to their financial lenders' requirements.

Why Guarantors need their own legal advice

Here's something that often surprises people: going guarantor isn't a small favour. It's a significant financial commitment, and the guarantor takes on real risk, often with little direct benefit to themselves beyond helping someone they love.

Because of this, most lenders require guarantors to get independent legal advice before signing anything.

This isn't just a box ticking exercise. It's there to make sure the guarantor genuinely understands what they're agreeing to, what could happen if things go wrong, and what their rights and obligations actually look like, before they put pen to paper.

You can read more about how guarantor arrangements work on our Guarantors page.

How CPC Lawyers can help

CPC Lawyers is one of the few firms based in Adelaide that specialises in providing independent legal advice to Guarantors, whether that's a parent helping their child buy their first home, or anyone else stepping in to support a loan application.

If you're a Guarantor needing advice on loan documents, or a first home buyer working towards an upcoming settlement date, we're here to help you understand exactly where you stand.

Call us on (08) 7325 0219 to book an appointment with one of our experienced solicitors.

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Disclaimer: The information provided on this website is general in nature only and does not constitute personal financial or legal advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.