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.
You Can Find Other Useful Links Below
AUSTRALIAN PROPERTY MARKET 2023: Its BOOMING and BUSTING State
From the bustling streets of Melbourne’s laneways to the serene landscapes of the outback, the Australian Property Market has always been a topic of intrigue, debate and aspiration.
Today we take a deep dive into its current state. Buckle up it’s going to be a good one.
AUSTRALIA PROPERTY MARKET CRASH: RENTAL CRISIS AT ITS WORST
Amidst the upheaval caused by rising interest rates on mortgages, Australia’s property market is facing a significant crisis – a devastating Rental Crisis at its worst. Despite the challenges faced by homeowners, experts have observed a surprising trend: the property landscape remains favorable for landlords, with national rent values steadily climbing.
WORST AUSTRALIAN HOUSING SHORTAGE: Homelessness On The Rise
[Australian Housing Shortage] Australia, a land of breath-taking landscapes and vibrant cities – but behind its beauty lies a deep-seated problem: the housing shortage. In this video, we will explore the causes and consequences of this crisis that is affecting the lives of countless Australians.
DEBT RECYCLING Investment Strategy [Hacking Australian Property Investment Strategies]
What is debt recycling investment strategy? Learn how it works for investments, making people wealthy, and why it often fails.
End of FINANCIAL YEAR Review: The Australian Economy in 2022–23
End of FINANCIAL YEAR Review: At the new financial year, concerns about inflation and rising interest rates were prevalent – and it seems not much has changed since then.
NEGATIVE GEARING and PROPERTY INVESTMENT – Why is it a HOTLY DEBATED topic?!?
Negative gearing and property investment have become a hotly debated topic due to its significant implications and polarizing effects.
