Doors Opening for First-Time Home Buyers
Opportunities are emerging for people who have previously been locked out of the market to get a foothold on the property ladder.
Falling interest rates, changes to the first-home owner grant in some states and builder incentives are making it easier to enter the home-buying market.
Those who are serious about buying property in the next year do, however, need to make sure they are financially fit to manage the responsibilities that come with a home loan. From a lender’s perspective, being seen as a “saver” is critical. Prospective purchasers should aim to accumulate at least a 20 percent deposit to avoid the cost of lenders mortgage insurance. Those enticed by current low rates also need to be aware rates are cyclical. It is advisable to factor in rate increases of at least two percent to give you an appropriate buffer.
Those who are uneasy about their personal or work situation should review their plans.