First-Time Home Buyers Rebound in the Australian Market: Overcoming Challenges and Embracing Opportunities in 2024
In a remarkable display of resilience, Australia’s first-time home buyers are boldly navigating the challenging landscape of recent rate hikes and escalating property values. Their determination to achieve homeownership is evident in the latest lending data, which reveals a significant 20.3% increase in loans to first-time buyers last year. Despite facing 13 cash rate hikes in 18 months and an 8.1% rise in property prices in 2023, these aspiring homeowners remain undeterred.
To support their journey, we offer five practical tips to help first-time buyers become mortgage-ready in 2024:
- Consult with a Mortgage Broker: Navigating the home-buying process can be daunting for first-timers. A mortgage broker can provide clarity on loan approval, anticipated costs, and strategies to enhance your financial readiness.
- Prioritise Savings: Demonstrating a consistent saving habit is crucial. Review your budget for possible cutbacks and increase your savings, which can reduce your future borrowing needs.
- Manage Your Credit Card Limit: Lenders often focus on your credit card limit rather than the balance. Lowering this limit could enhance your loan eligibility by showing responsible credit management.
- Explore First Home Buyer Support: Investigate various support schemes, including First Home Owner Grants and stamp duty concessions. Eligibility often varies based on property type and price, so thorough research is essential.
- Understand Deposit Requirements: While a 20% deposit is ideal, programs like the First Home Guarantee and Regional First Home Buyer Guarantee allow for a lower deposit, sometimes as little as 5%, without lenders mortgage insurance.
For personalised guidance on securing a competitive home loan, don’t hesitate to contact us. Together, we can explore the best options for your first home purchase in today’s dynamic market.
Disclaimer: This article provides general information and is not intended as specific financial or tax advice. Always consider your unique situation and consult a professional before making financial decisions. This content is copyrighted and should not be reproduced without permission
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