First-home buyers who wait until 2026 pay $77,000 extra over loan lifetime vs buying now
Annually first-home buyers face a $7.7 billion collective cost from market delays
Western Australia leads waiting costs at $164,000, double the national average penalty
Aussie research has uncovered what you, if you're one of approximately 11.44 million Australians who plan to buy a home in the next five years, likely already know: a lot of us are stuck.
Waiting.
Holding out for that moment when stars align, rates drop, and housing prices come back from the stratosphere.
In Australia's 2025 housing market, the cost of that waiting can come with a price tag upwards of $77,000.
While experts predict at least one - possibly three - more 0.25% cash rate drops this year bringing us to 3.60%, house prices have been climbing since the last cut in May.
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"Many first home buyers, even mum and dad investors, that we speak to become fixated on holding out for the right price or waiting for more cuts, when in reality, the perfect time to buy at any time over the past 25 years was yesterday," says Alya Manji, an Aussie Broker.
The numbers from Aussie’s modelling, based on tens of thousands of home loans between 2020 and 2025, paint a clear picture of how quickly costs can add up when you delay buying. Wait until 2026 instead of buying now? That'll cost you an extra $77,000 over your loan's lifetime, plus an additional $7,000 just for the deposit on the same house.
"This tells us that buying as soon as you can, even if it's not your dream first home, means paying a lower deposit, less in principal and less interest overall," Ms Manji explains.
With at least 100,000 first-home buyers entering the market annually, this collective hesitation represents a $7.7 billion cost as demand continues to outstrip supply.
Source: Internal Aussie Home Loans data, May 2025
STATE | *WAITING TAX (Over the life of the loan) | *WAITING TAX (Within the first year of purchase) |
|---|---|---|
New South Wales | $69,500 | $6,700 |
Victoria | $62,500 | $5,400 |
Queensland | $130,500 | $14,000 |
South Australia | $138,000 | $14,600 |
Western Australia | $164,000 | $16,000 |
In Queensland and South Australia, the cost of waiting is also more than double that of the national average, reaching $130,500 and $138,000, respectively. In New South Wales and Victoria, the cost of waiting is $69,500 and $62,500, respectively.
Since 2020, average deposits for first-home purchases have nearly doubled, which means first-home buyers now need twice the savings and double the time to save to reach a 20% deposit.
Taking charge of your buying journey
"While the goal posts are being moved, buyers can do so many things to take more control and avoid waiting longer than they need to while the market moves," Ms Manji points out. The toolkit is broader than most realise: low deposit loans, government grants, guarantor support, and lenders' mortgage insurance are legitimate pathways into the market.
"You can talk to a broker about these things, and you don't have to have everything figured out on your own," she adds. Consider a buyer's agent, too. Yes, there's a cost, but weigh that against market realities.
"Most first home buyers are navigating the entire process independently, from searching online to attending open homes and bidding at auctions. A buyer's agent acts on your behalf and can help you secure the right home and save time on your search, which we know from the data is critical."
The lesson here is that in a market where yesterday was always better than today, and today beats tomorrow. Especially when the alternative costs you the price of a decent European holiday every year for the next three decades.
Source: Internal Aussie Home Loans data, May 2025