Home buyers explore all options to enter the property market
The combination of record-high interest rates, higher levels of inflation, and increased living costs is impacting homeownership, with more than 91% of first-home buyers finding it increasingly tough to save a 20% deposit.
This was according to the latest Helia Spotlight survey, which also revealed that homeowner hopefuls were willing to explore various ways to enter the property market, including lenders mortgage insurance (73%), rent-to-own (39%), co-ownership (36%), the “bank of mum and dad” (34%), and government schemes (30%).
“First-time buyers understand the long-term financial benefits of homeownership and are motivated to achieve this goal,” Helia CEO Pauline Blight-Johnston (pictured above) said.
The survey also confirmed that home buyers recognise the value of mortgage brokers in helping them navigate through the often-daunting home-buying process, helping them cut through complexity and finding the right type and size of loan.
Some 54% of recent home buyers applied for their home loan through a mortgage broker, while 62% identified mortgage brokers to be a trusted source of information.
Prospective home buyers identified needing support with all aspects of securing a home loan – including determining borrowing capacity (63%), choosing the right home loan for their circumstances (60%), getting loan pre-approval (56%), and the final application (55%).
When asked about home buyer strategies for managing their money in the current economic environment, 17% said they had a documented budget they broadly stick to, 44% reported saving small amounts regularly, while a further 26% said they save a significant amount of their income consistently.
Blight-Johnston said Helia understands that “homeownership supports financial well-being” and that the company remains committed to developing solutions that offer the flexibility to the increasing number of home buyers seeking to enter the property market, or transition from renting.
To assist potential home buyers, Helia offers a monthly LMI option and a deposit comparison estimate tool to provide guidance around the potential benefits of different options for aspiring home buyers with less than a $20% deposit.
Here’s where to access Helia’s Spotlight survey.
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