Credit lockdown contributing to dim first home buyer figures

by AB13 Mar 2013

More of Australia’s new generation of first home buyers (FHB’s) are living with credit defaults, which could be a major contributing factor in country’s ‘dim’ first home buyer figures - with Gen Y facing credit lockdown in increasing numbers - says a credit repair specialist .

According to a recent report from credit reporting agency Veda Advantage, the number of credit defaults amongst Gen Y has grown 5.3% over the past three years to 60% of the share of all credit defaults.

Gen Y appears to have the lion’s share of defaults across all account types: telecommunications, credit cards, utilities and personal loans.

Figures released yesterday by the Australian Bureau of Statistics confirm FHB commitments as a percentage of total owner occupied housing finance commitments fell to 14.9% in December, 2012 from 15.8% in November 2012.

CEO of MyCRA Credit Rating Repair, Graham Doessel, says goals for owning property may be far out of Gen Y’s grasp.

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