Rates no deterrent to FHBs

by Adam Smith19 Apr 2012

Lack of a deposit - not interest rate movements - is keeping first homebuyers out of the market.

A survey by Loan Market has found interest rates were the single least influential factor in whether first homebuyers chose to enter the property market. Just 5% of brokers tipped interest rates as a factor keeping potential first-time buyers from purchasing.

Saving for a deposit has proven the most common hurdle for first homebuyers. Fifty-two per cent of respondents said a lack of genuine savings is proving the biggest barrier to potential buyers.

"While it has been well documented that Australian consumers have been prioritising savings, this has been hard for the first homebuyers," a Loan Market spokesman said.