New study reveals delaying a purchase could add $77,000 to long-term loan costs

As property prices continue to climb across Australia, prospective homebuyers who choose to wait could face significant financial setbacks, according to new research from Aussie Home Loans.
The modelling suggests that delaying a property purchase until 2026 could cost the average buyer an additional $77,000 over the life of their loan. This includes an estimated $7,000 more for a deposit, driven by rising housing costs and increased competition.
With approximately 100,000 first-home buyers entering the market each year, the combined cost of waiting could total around $7.7 billion nationally. The analysis indicates that property price growth is outpacing the potential benefits of interest rate reductions.
Since 2020, the average deposit required for first-home buyers has nearly doubled. This has significantly extended the time needed to save a 20% deposit, further challenging affordability. In addition, various state-based tax implications tied to purchasing timelines are adding to the financial burden.
In Western Australia, the so-called “waiting tax” has reached as high as $164,000, including an expected $15,000 rise in the deposit requirement by 2026. Queensland and South Australia show similarly steep costs of $130,500 and $138,000, respectively. In New South Wales and Victoria, the estimated financial impact of delaying a purchase is lower but still substantial, at $69,500 and $62,500.
The report has been released ahead of the Reserve Bank of Australia’s next interest rate decision, due later today. Economists expect a cut of at least 0.25 percentage points, which would lower the cash rate to 3.85%, its lowest level in two years.
Although falling rates are generally viewed as favourable for borrowers, increased affordability may lead to heightened demand and rising prices. Aussie broker Alya Manji (pictured above) noted that housing values have already increased for three consecutive months following the previous rate cut in February.
“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,” Manji said. “While the goalposts are being moved, there are so many things that buyers can do to take more control and avoid waiting longer than they need to while the market moves.”
Manji highlighted options such as low deposit loans, guarantor support, and lenders mortgage insurance as alternatives for accelerating a home purchase. “So, there are many ways to get around the difficulties of getting into the market,” she said. “What you can’t get around is the property market increasing. Even if the rates drop, property prices will continue to rise… and they are already expensive, so people really need to think about how much they are losing by waiting.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.