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A mortgage broker has reported a 12.6% increase in first home buyer enquiries a 17% increase in applications during October compared with the same period last year, a surge it attributes to the approaching first home buyer scheme.
“Our data indicates that Aussies recognise that now’s a good time to do their research and chat to a broker before the scheme comes into effect, so they don’t miss out.”
The scheme comes into effect 1 January 2020 and will give 10,000 buyers per year the opportunity to purchase a first property with a deposit of 5% to 20% and no LMI.
Year to date, the majority of Aussie’s first homebuyers came from NSW, VIC and QLD – and interestingly, 96% of first homebuyers settled their loans without the help of a guarantor.
In addition, only 23% paid Lenders Mortgage Insurance (LMI) – meaning the majority are paying a 20% deposit.
The data also showed the average deposit paid by first homebuyers in the two largest states, NSW and VIC, had decreased only minimally by 1% and 5% over the last year.
“Young Australians naturally want to progress in life, and buying a home is very much a part of that progression. With the current low rates, strong auction clearance rates and the Federal Government Deposit Scheme – the new year is looking positive for first homebuyers,” Symond concluded.
