FHB enquiries surge before the new year

Brokerage reports a nearly 20% increase in applications year on year

FHB enquiries surge before the new year

News

By Madison Utley

A mortgage broker has reported a 12.6% increase in first home buyer enquiries a 17% increase in applications during October compared with the same period last year, a surge it attributes to the approaching first home buyer scheme.

Aussie CEO James Symond said, “Aussie anticipate first home buyer enquires to continue to increase as young Australians review their home loan options in the lead up to the launch of the federal government’s new First Home Loan Deposit Scheme.   

“Our data indicates that Aussies recognise that now’s a good time to do their research and chat to a broker before the scheme comes into effect, so they don’t miss out.” 

The scheme comes into effect 1 January 2020 and will give 10,000 buyers per year the opportunity to purchase a first property with a deposit of 5% to 20% and no LMI.  

Year to date, the majority of Aussie’s first homebuyers came from NSW, VIC and QLD – and interestingly, 96% of first homebuyers settled their loans without the help of a guarantor.

In addition, only 23% paid Lenders Mortgage Insurance (LMI) – meaning the majority are paying a 20% deposit. 

The data also showed the average deposit paid by first homebuyers in the two largest states, NSW and VIC, had decreased only minimally by 1% and 5% over the last year.  

“Young Australians naturally want to progress in life, and buying a home is very much a part of that progression. With the current low rates, strong auction clearance rates and the Federal Government Deposit Scheme – the new year is looking positive for first homebuyers,” Symond concluded.

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