Borrowing Soars: First Home Buyers Support From Government
Why is first home buyers support continuing?
A typical Australian home loan has blown out by almost $100,000 in a year.
A new report shows the average home loan is now more than half a million dollars, and more people are borrowing well above their property’s purchase price.
It comes as official figures reveal home lending rose 1 per cent in June, with investors continuing to drive up borrowing costs.
The average Australian is now borrowing $596,000 to buy an established property, according to new national statistics.
The national average has been rising (and up and up) in recent months. October’s figure was $571,000, while that of November 2020 was $503,000.
With pay not rising at the rate it once did, having a professional on your side when it comes to obtaining finance for your next house purchase is more crucial than ever.
State by state breakdown
Except for Western Australia, where loan sizes hit new highs in October 2021, all states and territories saw year-over-year increases in large loans.
As of November 2021, compared to November 2020, the following is a quick state-by-state breakdown.
NSW: $769,000 – $644,000 (in November 2020)
Victoria: $619,000 – $499,000
Queensland: $514,000 – $440,000
South Australia: $422,000 – $384,000
Western Australia: $440,000 – $417,000
Tasmania: $446,000 – $373,000
Northern Territory: $433,000 – $380,000
ACT: $586,000 – $527,000
First Home Buyers Support From The Government
The good news for first home buyers is that, in most cases, the average loan values listed above are still below the state and territorial property price caps for a number of government programs, such as the First Home Loan Deposit Scheme and New Home Guarantee initiatives.
That’s right – purchasers of these two programs may build or purchase a property with only a 5% deposit, without having to pay for LMI, which on average helps individuals buy their first home 4 to 4.5 years sooner.
This is the benefits of the first home buyers support for that section of the market.
Another factor in your advantage is that the Reserve Bank of Australia’s (RBA) formal cash rate is at a record low and interest rates are also quite cheap as a result. (This helps with your borrowing capacity.)
One very essential step you may take is to get in touch with us so we can assist you in determining your borrowing capacity. We can also assess avenues of first home owner support from state and federal governments.
This way, you may determine whether the property you’re looking at is a goer and, if not, suggest methods for bringing it closer. Give us a call now – we’d love to help you explore your borrowing options.
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