Tough Conditions for First Home Buyers

Aspiring first-home buyers need to save solidly for more than five years to make their dream of home ownership come true. A recent study by comparison website RateCity found a potential home buyer earning the average income of $70,000 and saving 10 per cent of their wage would take five years and seven months to build up a 10 per cent deposit for a home loan. The results found a first-home buyer could save $30,667 for a maximum recommended mortgage of $276,000.

“Buying a home remains a distant dream for many Australians,” said Michelle Hutchison from RateCity. RateCity figures show that it would take a first-home buyer 11 years to save a 20 per cent deposit on a $276,000 mortgage, which would result in them not having to pay lenders’ mortgage insurance. “It’s really hard for first home buyers,” she said. “Wages are not going up at the same rate as property prices.”