Housing has become one of the defining narratives of Australian life, with far-reaching implications. Housing affordability was at the worst level on record last year, both for prospective home buyers and renters, and more people were being pushed towards already stretched support systems, the National Housing Supply and Affordability Council’s State of the Housing System 2026 report found.Data from that report shows how the squeeze has intensified. The length of time it takes to save for a home deposit stretched from nine years in 2015 to 11.2 years in 2025, while the rent-to-income ratio was 33.1% in the December quarter last year, compared with a 10-year average of 29.1%.A tangle of contributing factors – from the rising costs of new builds to insufficient social housing – means finding a solution remains elusive. The National Housing Supply and Affordability Council recommends a number of measures, including planning reform, improving construction-sector productivity, greater investment in social and affordable homes, stronger rental protections and tax settings that better support supply and affordability.How deposits can helpWhile policy reform and new supply remain critical, housing is also shaped by the flow of capital and decisions around financing homes, says Jane Kern, the head of impact management at Bank Australia, where a new term deposit is supporting housing that is affordable, accessible and sustainable.“Housing needs funding and one way we approach this is with loans funded by customer deposits in an Impact Term Deposit,” she says. “It’s quite a direct relationship, so even if you’re starting with a deposit of $500, you can support a pool of lending that funds projects with a targeted impact for people and the planet. A small deposit might not be enough to fund a whole loan, but because you’re pooling with others, your savings can support that.”Launched this year, the Impact Term Deposit leverages customer funds to support loans for individuals and organisations.“The affordable housing loans include initiatives like loans to community housing providers – organisations that build and operate social and affordable housing for people who can’t access the private rental market,” Kern says.“The pool also includes home loans via affordable mortgage programs like government-backed shared equity programs, which help home buyers get into the market with a smaller deposit and loan.”Funds are also used to support loans for people who want to buy or build new, energy-efficient homes, and homeowners who want to make green upgrades to existing homes, such as getting off gas and going fully electric, or adding solar panels.