First home buyers show enthusiasm despite drop in loan commitments

Media release

01 July 2020|2 minute read

 

The latest Australian Bureau of Statistics data released today shows there was a 11.2 per cent drop in new loan commitments in May 2020, and first home buyer commitments were also down by 9.3 per cent.

While reduced transactions in the housing market suppressed new loan activity in May, the combination of lower mortgage interest rates and a range of new and existing federal and state government grants schemes on offer prompted a staggering 219 per cent rise in first home buyer enquires to Australia’s leading mortgage broker Aussie, during June compared to the same period last year.

CEO of Aussie, James Symond said, “With property price growth dropping off, along with the lowest interest rates on record, and a range of government schemes on offer, if you are in good shape from an employment and income perspective, now could be a good time to get into the market.”

Recent research released by Aussie shows aspiring first home buyers are struggling to navigate the mortgage market themselves, often feeling overwhelmed and confused with 7 in 10 first home buyers expressing they want to take advantage of the current market conditions but feel they don’t know how.

“Given the current market and economic conditions, our research show 5 in 6 first home buyers admit they want more financial guidance and the research shows most intend to use a broker to achieve their property goals,” added Mr Symond.

“While there is great enthusiasm amongst first home buyers, there are traps and a mind boggling array of mortgage products available in the market and as a result, they need to be properly informed and provided guidance from a broker to ensure they are making the right choice of finance.”

Mr Symond concluded, “First home buyers needed to understand how much they could afford, especially if rates rise again and product suits their current income level and aspirations.”


 

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