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The COVID-19 pandemic has triggered a shift in priorities among young Australians, with almost half expressing an increased desire to buy a home, according to a study from Mortgage Choice.
The study found that around 45% of young Australians are feeling optimistic about achieving their homeownership goals. This is despite affordability still being a significant concern, especially amid the COVID-19 outbreak.
Furthermore, the study showed that these young Australians are committed to saving and buying a home sooner, with 60% saying they are reducing their spending. More than half are also making an effort to add more to their savings accounts while around the same are applying for government grants.
Susan Mitchell, chief executive officer of Mortgage Choice, said the pandemic has given young Australians a “wake-up call,” forcing them to look at their finances and reassess their goals.
The fact that first-home buyers can now access the most competitive home loan rates on record and unprecedented levels of government support such as grants and schemes provides compelling incentives to act on property ownership dreams," she said.
Mitchell said it has become a must for buyers to consult with professionals like mortgage brokers to easily navigate the lending market and to determine their financial capacity.
In fact, the study found that around a third of first-home buyers have "minimal confidence" when it comes to deciding which loans are suited for their needs. A fifth, on the other hand, said they are not confident at all.
"A mortgage broker will help you understand your borrowing power and make sense of the often-overwhelming process of applying for a home loan,” she said.
Mitchell furthered: "Brokers make it easier for first-time borrowers to understand the steps in their home loan journey, compare loan options and make informed decisions about which product best suits their goals and needs."
