Money.com.au’s latest Mortgage Insights report for the September quarter showed that loans for first-home buyers (FHB) are growing at a rate three times faster than other owner-occupier loan types.
Specifically, FHB loan numbers increased by 9.1% annually, compared to just 3% for other loans.
A staggering 93.2% of all FHB loans were made to owner-occupiers, rather than investors.
However, the investor segment among first home buyers is expanding, as 6.8% are now purchasing investment properties as their first step onto the property ladder.
The average annual loan size for first-home buyers in Australia has now surpassed $525,000, marking a 1.6% increase over the quarter and a 6.4% rise on an annual basis. This figure is still below the average loan size for non-first home buyers, which is $598,000.
Victoria has seen the most significant annual increase in first-home buyer loans, with a growth rate of 14.6%, substantially outpacing Queensland'’ 4.5% and New South Wales’ 10.9%. South Australia also showed robust growth at 8%.
Victoria holds the largest share of the nation's first-home buyers, with 36% of all FHB owner-occupier loans occurring in this state.
This surge in first-home buyer loans in Victoria is attributed to more affordable property prices compared to places like Sydney, as well as attractive state-specific incentives for first-home buyers.
The trend of “rentvesting,” where individuals invest in property while continuing to rent, is becoming increasingly popular across Australia. This strategy allows first-home buyers to enter the real estate market without giving up the flexibility or location preferences that renting can offer.
Mansour Soltani (pictured above), a property expert at Money.com.au, highlighted the strong momentum in Victoria’s first-home buyer market.
Soltani noted that the combination of more accessible property prices and supportive policies is making Victoria an attractive option for first-time buyers.
The Money.com.au report provides critical insights into the dynamics of Australia’s first-home buyer market, underscoring the significant growth in this sector, especially in Victoria.
With the rise of rentvesting, Australians are finding innovative ways to navigate the property market, signaling a shift in traditional home ownership trends as we move into 2025.
