First Home Buyers are on the rise.
First home buyer numbers hit a decade high as affordability shows signs of improvement.
Housing affordability is looking more promising. Research conducted by the Housing Industry Association of Australia has shows that servicing a mortgage is less of a difficulty than obtaining the home loan in the first place. Increasing house prices are making it harder to save a deposit, but structural changes to the banking sector are also working against first home buyers. Banks have new and stricter policies on lending to those with a high Loan to Home Value Ratio (LVR). Unfortunately, first home buyers tend to have the highest LVR’s of any segment of home buyers. This puts borrowers at a severe disadvantage when needing to borrow on an LVR of less than 20%, which is of course becoming more difficult to avoid as house prices increase.
Despite this, First Home Buyers have come back in a big way, hitting record high purchasing numbers of the decade. That’s a big win for a customer base where, research says, 94% believe that housing affordability is a big issue for Australia.
In today’s climate, with housing affordability improving and home loan rates at an all time low, it could be the perfect time to make that leap and buy your first home if you are in the lucky few are still able to work given the current pandemic.
At Finance Mutual Australia, we are the experts at finding you the perfect home loan for your needs, and we are very experienced at navigating loans with higher LVR’s for those First Home Buyer loans.
If you are considering purchasing a home, contact us today