Affordability Diaries: Two first-home buyer couples, two very different properties

There isn't one clear formula for buying your first home in 2026. For some couples, it means heading regional with a small deposit and a big amount of hope. For others, it's using government schemes to secure a compact inner-city apartment - and getting unexpectedly familiar with strata reports along the way.

Below are two anonymous affordability snapshots, showing what buying as a couple really looks like in one of the most expensive places in the world, Australia.

Affordability Diary #1: The Regional Leap

In 2023, this couple bought a four-bedroom house in Cairns with enough space for a growing family and beloved pooch.

The snapshot:

Purchase year: 2023

Location: Cairns Northern Beaches

Property: 4 bed, 1 bath, 2 car

Purchase price: $500,000

Household income: $150,000

Deposit: 5%

Upfront costs: $2,000 plus lenders mortgage insurance (LMI)

Government support: None

Family help: $5,000 from a parent to bridge a shortfall

Other debts: Personal loan for solar panels

They entered the market with a small deposit and paid lenders mortgage insurance - the reality for many first-home buyers who don't want to wait to save 20 per cent (we have since seen the launch of the Government's 5% deposit scheme meaning they wont have to pay LMI).

They also credit their mortgage broker as 'essential', stressing it removed stress and kept them on track. Having been through the process myself, I agree.

A good mortgage broker will make sure you both know exactly what's going on at every step of the journey. A hybrid of strategist, project manager and emotional counsellor.

Interestingly, their mortgage initially felt like a stretch. Their mortgage repayments were roughly $250 per week more than their rent at the time. Since then, a surge in rental prices has changed the landscape.

"Now average rent in our area is more than our mortgage," says Rebecca*.

Affordability, in their case, improved over time - though it wasn't all smooth sailing. Within six months of purchase, they encountered insurance issues linked to a "dodgy" building inspection. Never a fun thing for new homeowners to endure.

It's a reminder that buying is just the beginning. Cash buffers matter. So does due diligence and finding trusted providers to help you. Even with trusted professionals, there is no guarantee what will happen in the future.

Affordability Diary #2: The Inner-City Foothold

This couple signed contracts in January 2026 on a one-bedroom apartment in Erskineville, an Inner West suburb of Sydney, with settlement due in April this year.

The snapshot:

Purchase year: 2026 (settlement pending)

Location: Erskineville, Sydney

Property: 1 bed, 1 bath, 0 car

Purchase price: $775,000

Household income: $275,000

Deposit: 5% ($38,750)

Government support: 5% deposit scheme (no LMI)

Stamp duty: $0

Upfront costs: ~$2,500 legal, $300 strata report, $600 pest and building

Other debts: $40,000 HECS, $9,000 credit card limits

On paper, their income is strong. But like many renters (especially those in Sydney), saving up for a deposit whilst renting can be a challenge.

Using the 5 per cent deposit scheme allowed them to avoid lenders mortgage insurance and enter the market sooner. Without it, they likely would have needed more time to save, in a market that continues to climb.

What surprised them most wasn't the numbers - it was the emotional toll. "It can feel like dating and being ghosted by agents" said Alex* .

They also learned quickly that buying an apartment means interrogating the fine print.

They've seen buildings with:

$200,000 special levies for roof repairs

$15,000 per year additional levies for a decade

Undisclosed fixture exclusions

Strata reports costing $50+ each to access

It's an important reminder that you aren't just buying an apartment, you are becoming a part owner of the building - and the costs and maintenance that go with it.

They haven't yet started making mortgage repayments, so there's still some uncertainty about how it will feel month to month - particularly with interest rates shifting and the potential for future strata increases.

They know the numbers stack up on paper - now it's about seeing how it feels in real life, once repayments begin. But given they have borrowed less than 3 times their annual household income (far lower than most new buyers today), they should be in a good position to manage their repayments comfortably and have financial wiggle room. Every first-home buyers dream.

What these diaries reveal about affordability in 2026

These two examples show there isn't one 'correct' way to buy your first home. Despite their different situations and property types, both couples had some similarities:

Both entered with just a 5% deposit.

Both relied on external support - either family or government schemes.

Both underestimated the emotional load.

Both faced (or anticipate) unexpected costs.

Affordability isn't as black or white as it may first appear. It changes over time.

For the Cairns couple, the mortgage felt expensive at first. A few years on, with rents rising around them, it feels more manageable. They've now also got a decent level of equity thanks to price rises and paying off some of the principal. If they had instead held off and tried to get a 20 per cent deposit, would they have been able to get in, or get the quality of property they got? Honestly, probably not.

For the Sydney couple, settlement hasn't happened yet. They've run the numbers, but they also understand that interest rates and strata costs can shift and they've borrowed an amount to give them some financial breathing space if (or when) that happens.

If you're thinking about buying as a couple, consider this

These affordability diaries aren't about comparing incomes or judging deposit sizes. They're a reminder that buying property is rarely neat - and it's never just about the purchase price. If you're considering taking the leap, here are some conversations worth having before you sign anything:

Are we ready to buy - or do we want to keep saving?

A 20 per cent deposit isn't the only pathway anymore. But a smaller deposit means higher repayments (and potentially lenders mortgage insurance). The question is do you keep saving, or go in earlier and borrow more?

Do we actually know what government schemes we're eligible for?

Stamp duty concessions, 5 per cent deposit schemes and state-based initiatives can materially change your numbers - check and see what you're eligible to get and how that might change your strategy.

How much debt feels comfortable for us?

Not just what the bank will lend - but what allows you to sleep at night. Borrowing capacity and emotional capacity aren't the same thing. And you both might have different answers, so compromise and communication is key (nothing like a single lass giving relationship advice!).

Are we buying as joint tenants or tenants in common?

This is a legal decision with long-term implications. It's worth understanding the difference and documenting intentions clearly. Trust me.

If one of us got sick, couldn't work or died - what happens?

Would the surviving partner be able to service the loan? Would the bank call it in? Do you need income protection or life insurance in place before settlement? It's important to review this and the cost. Sure you may not want another line item in your budget, but what will it cost you if you don't have them in place?

Do we have an 'A team'?

A trusted mortgage broker, solicitor or conveyancer, and in some cases a buyer's agent - can reduce risk and stress significantly. You can't do it alone, gather your 'A team' to support you both.

How will we handle change?

Interest rates move. Maintenance happens. Strata levies increase. Special levies happen. What does your buffer look like, and how will you respond if costs increase

Buying your first home isn't about having everything perfectly lined up. Perfect doesn't exist. It's about understanding the risks, knowing your numbers, and making a decision that aligns with your shared goals.

Affordability looks different for everyone. You do, however, need a plan and a bucket-load of bravery.

*Names changed for privacy.

READ: Why your 'Pre-Approval' doesn't actually mean you can afford the house

Jessica Brady is a money educator, leading money expert & ex- financial adviser. She is on a mission to educate and empower everyday Australians to be better with money through her online money programs and via the Financially Fierce Podcast. You can learn more at jessicabrady.com.au

This article is general advice only, all of the comments above do not take into account your objectives, financial situation or needs.

Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. Jessica is an authorised representative (No. 1259972) of MoneySherpa Pty Ltd - AFSL 451289 | ABN 32 164 927 708 | Corporate Authorised Representative No. 1305567.