Higher deposits, stretched LVRs & more borrowers needing mortgage insurance

The amount of money required for a home deposit is rising and more than half of home buyers had to pay lenders’ mortgage insurance in FY23, according to a new report released by PEXA.

NSW recorded the highest median deposit in FY23 at just below $120,000, up 3.9 percent on FY22. In Victoria, the median deposit was $84,723, down 0.5 percent, and in Queensland it was $78,143, up 8.5 percent.

The time it takes to save these deposits is on the rise. Based on the median family income in each state and a 15 percent savings rate, PEXA found NSW buyers now need an average of almost eight years to save their deposit. This is up a whopping 83 percent since 2020. It takes Victorian buyers a little over five years to save their deposit, up 64 percent since 2020. It takes Queensland buyers just under five years, up 37 percent over two years.

Average deposit-to-value ratios (DVRs) increased to about 20 percent across the three major eastern states as a result of lenders tightening their credit criteria in FY23. The DVR is the amount of cash a buyer contributes to a purchase. The average DVRs in FY23 were 20.4percent in NSW, up 1 percent on FY22; 19.5 percent in Victoria, up 0.8 percent and 19.8percent in Queensland, up 1.5 percent.

The PEXA data shows most borrowers are taking out the maximum possible LVR (loan to value ratio) to fund their purchases. The average LVRs among borrowers in FY23 were 79.6 percent in NSW, 80.5 percent in Victoria and 80.2 percent in Queensland. The research shows the major banks averaged higher LVRs, suggesting they are “more open to lower deposit borrowers, due to their visibility of borrower’s income and expenditure via existing banking relationships”. This also meant more major bank customers had to pay lenders’ mortgage insurance (LMI).

Most lenders will not lend more than 80 percent of a property’s value without forcing the borrower to pay LMI. This insurance protects the bank from default and can be very expensive. Over half of new borrowers had to pay LMI in FY23. The rate was highest in Victoria, where 56.5 percent of new borrowers had to take out LMI.

The PEXA report said rising property prices meant buyers needed higher deposits, making it tougher to buy a home and making the “generational wealth gap more apparent”.

As a result, younger buyers are increasingly tapping the Bank of Mum and Dad to help them achieve the required deposit, as well as taking advantage of government support through various programs.

From late 2026 and into 2027, PONANT Explorations Group will base two ships in French Polynesia, offering travellers a choice between a culturally immersive classic and a far more exploratory deep-Pacific experience.

The move builds on more than 25 years of operating in the region with the iconic m/s Paul Gauguin, while introducing the expedition-focused Le Jacques Cartier to venture into lesser-known waters.

Together, the two vessels will cover all five Polynesian archipelagos — the Society, Tuamotu, Austral, Gambier and Marquesas Islands — as well as the remote Pitcairn Islands.

THE PAUL GAUGUIN: CULTURAL IMMERSION, POLYNESIAN STYLE

Long regarded as the benchmark for cruising in French Polynesia, m/s Paul Gauguin will remain based year-round in the region.

Renovated in 2025, the ship continues to focus on relaxed, culturally rich journeys with extended port stays designed to allow guests to experience daily life across the islands.

A defining feature of the onboard experience is the presence of the Gauguins and Gauguines — Polynesian hosts who share local traditions through music, dance and hands-on workshops, including weaving and craft demonstrations.

The atmosphere is deliberately intimate and internationally minded, catering to travellers seeking depth rather than distance.

Across the 2026–27 seasons, the ship will operate 66 departures, primarily across the Society Islands, Tuamotu and Marquesas, with select voyages extending to Fiji, Tonga and the Cook Islands.

LE JACQUES CARTIER: EXPLORATION AT THE EDGE

Le Jacques Cartier introduces a more adventurous dimension to PONANT’s Polynesian offering, with itineraries focused on the least visited corners of the South Pacific.

The ship will debut three new “Discovery” itineraries, each 14 nights in length, which can also be combined into a single, extended 42-night voyage — the most comprehensive Polynesian itinerary currently available.

In total, the combined journey spans six archipelagos, 23 islands and the Pitcairn Islands, a British Overseas Territory rarely included on cruise itineraries.

Unlike the Paul Gauguin’s cultural focus, Le Jacques Cartier centres on exploration.

Each day includes one guided activity led by local experts, with excursions conducted via tenders, local boats and zodiacs. Scuba diving is available on board, supported by a resident instructor.

Across the 2026–27 period, the ship will operate nine departures, offering a deliberately limited and low-impact presence in some of the Pacific’s most isolated communities.

THREE NEW DISCOVERY ITINERARIES

The new itineraries aboard Le Jacques Cartier include:

– Secret Polynesia: Unexplored Tuamotu, the Gambier Islands and the Austral Islands
– From Confidential French Polynesia to Pitcairn Island
– Polynesian Bliss: Marquesas and Tuamotu

Each voyage departs from Papeete, with prices starting from $15,840 per person.

SCOUTING THE PACIFIC’S MOST REMOTE COMMUNITIES

In preparation for the new itineraries, PONANT Explorations Group undertook extensive scouting across the Austral and Tuamotu Islands to develop activities in collaboration with local communities.

José Sarica, the group’s R&D Expedition Experience Director, worked directly with residents to design experiences including welcome ceremonies, cultural workshops and visits to marae, the region’s sacred open-air temples.

Six new ports of call have been confirmed as part of this process, spanning both the Tuamotu and Austral archipelagos.

SIX NEW PORTS OF CALL CONFIRMED

New stopovers include:

– Mataiva, known for its rare mosaic lagoon
– Hikueru, home to one of the largest lagoons in the Tuamotus
– Makemo, noted for its red-footed boobies and frigatebirds
– Raivavae, famed for its crystal-clear lagoon pools
– Tubuai, rich in marae and spiritual heritage
– Rurutu, known for limestone caves and seasonal humpback whale sightings

A DUAL EXPERIENCE, ONE DESTINATION

By pairing its long-established cultural voyages with expedition-led exploration, PONANT Explorations Group is positioning French Polynesia not as a single experience, but as two distinct journeys — one grounded in tradition and comfort, the other pushing into the furthest reaches of the Pacific.

For travellers seeking either immersion or discovery, the South Pacific is about to feel both familiar and entirely new.