The Albanese Government's First Home Guarantee Scheme, which allows first-home buyers to purchase a home with a 5% deposit, will break the bank for many, according to data compiled by the parliamentary library.
The analysis looks at the affordability of repayments under the scheme on the median house and unit price in each Australian capital city for the most common professions.
It reveals that of the 3.8 million Australians in the top 10 most common professions in Australia, the vast majority would be unable to afford mortgage repayments on the median Australian home without falling into housing stress (spending at least 30% of their income on housing costs).
The data shows that for many of the country's most common and essential professions, home ownership under Labor's scheme remains out of reach. For a nurse earning an average income to purchase a house in Sydney (where the median sale price is $1,490,000), they could be spending 76% of their earnings on mortgage repayments. For a school teacher, that figure could be as high as 87% of their income.
As of Oct 1st 2025, the Albanese Government lifted borrowing limits and income caps under the scheme, which the Australian Greens warn will push up house prices even further and saddle first-home buyers with huge levels of debt.
As stated by Greens finance, housing and homelessness spokesperson Senator Barbara Pocock:
"Under this scheme, Labor is encouraging some of our lowest paid workers to take out loans on homes they can't afford. First-home buyers with a 95% mortgage debt will be slammed with more than $1,000 in weekly mortgage repayments - that's a recipe for disaster.
"First-home buyers are being conned into thinking that it's better to have an insurmountable debt than to pay off someone else's mortgage. But what's really going to happen is they'll be forced to forgo weekly essentials just to pay their mortgage and will face deep financial stress.
"Labor is asking our nurses and teachers to spend the bulk of their income on mortgage repayments - how are they supposed to live? It's reckless to push people into loans they can't afford while the banks cash in. Forcing first-home buyers into housing stress isn't the answer to the housing crisis.
"This isn't a housing fix - it ignores the real causes of the housing crisis. We should cut tax breaks for wealthy property investors and build affordable and social housing."
"Without tackling the root causes of the housing crisis, Labor's scheme will only inflate property prices further - locking even more people out of home ownership. That includes essential workers, such as nurses and teachers, who are already struggling to afford homes near their workplaces.
"Australia's housing market is rigged in favour of wealthy property investors and banks and it's failing everyone else. Tax concessions like negative gearing and capital gains tax discounts allow investors to outbid first-home buyers - leaving young people and low-income workers behind.
"This government has a chance to take real action on the housing crisis. But instead they are making the problem worse and risk shutting an entire generation out of home ownership altogether."
Data:
Number of employees by occupation - Labour Force, Australia, Detailed, August 2025 | Australian Bureau of Statistics, for the November quarter 2024 and includes all employees regardless of employment status (e.g. full time or part time).
Weekly earnings by occupation - Employee Earnings and Hours, Australia, May 2023 | Australian Bureau of Statistics, for May 2023.
Average Weekly Earnings, Australia, May 2025 | Australian Bureau of Statistics
Monthly Median dwelling sales prices by Capital City are taken from the Corelogic (now Cotality) Property Market Indices report, for May 2025
Mortgage repayment assumptions:
- A loan for 95% of the purchase price (median sales price)
- A home loan rate of 5.76% Reserve Bank of Australia, Table F6 - Housing Lending Rates. Lending rates, New loans funded in the month, Owner-occupied, Variable-rate, Large institutions
- A term of 30 years
Proportion of earnings required
- Mortgage repayments as a percentage or earnings have been calculated for each occupation, city and dwelling type combination
- Percent of earnings required is benchmarked against 30% of earnings, as a rough measure of affordability
