New data show first home buyers on the rise

New data show first home buyers on the rise

New data published by the Australian Bureau of Statistics (ABS) shows loans to owner occupiers are on the up and up.

The housing market has been a tough place for first home buyers for a long time, so this is great news for younger borrowers.

Here’s what else you should know. 

What are borrowers doing?

Every month Australian banks send their loan statistics to the ABS, who collates the figures and publishes them.

This data picks up trends in the financial market, and helps us get a good indication of what borrowers and lenders are actually doing in Australia.

This month’s data clearly shows owner occupier loans are on a steep incline, while investor lending is on the retreat.

Why does this matter?

First home buyers were considered to be ‘locked out’ of the property market for a long period of time, with market share dropping to under 13%.

As the property market in Australia gets stronger, we’re seeing owner occupier market share increase significantly.

As of this month, owner occupiers are up 16.6% - the highest in 4 years. While it’s still not in line with the 22% average of the nineties, it’s still good news. (Head here for the source on these figures.) 

What this does show is that younger borrowers are finally get their foot back into the property market.

What has caused this change?

Housing prices are a significant factor, especially in Perth where the mining and resources boom has ended.*

We’ve also seen prices finally ease in Sydney, after a long period of pressure.*

Regulators have also played an important role in the shift, imposing regulations to tighten investor lending and increase interest rates for investors.

We’re finally seeing this prudential regulation pay off.

Looking for your first home?

Talk to us about finding out how much you can afford to borrow, so you know what is within you’re budget when you are searching for a property.

We can also assist investors with navigating the lending process, and securing a loan that suits your goals and budget. 

Despite investor lending being on the decline, it is still possible to secure a suitable loan, with the right assistance. 

In both cases, we only recommend loans that match your circumstances, budget and goals. And we compare loans from more than 30 different lenders. (That’s hundreds of loan products.)

All of this means you have peace of mind that the loan you end up with is right for you.

Get started now.

* Head here for the source.


Financial Advice Disclaimer: This information is general in nature. Mortgage brokers do not provide financial advice. Clients seeking financial advice will be referred to a qualified financial planner.