First home buyer activity at highest level in years

First home buyers are making a dramatic comeback, with loans to the buyer group hitting a six-year high.

The latest ABS Housing Finance figures reveal that first home buyers made up 18.1 per cent of all new mortgages given out during June.

The volume of first home buyer occupier lending went up by 11.4 per cent in the 12 months to June, likely spurred on by new government incentives brought in at both a state and federal level last year.

Housing Industry Association senior economist Shane Garrett has noted other reasons why first home buyer numbers have gone up, including slowing house prices and low interest rates.

“On balance, the slowdown in dwelling price growth over the past year and ongoing low interest rates have been favourable for those seeking to access the market for the first time,” Mr Garrett said.

Additionally he noted that shrinking investor activity might be easing things for first home buyers.

“The value of housing investor loans hit a five-year low during June and has declined by 22.4 per cent since its peak at the beginning of last year,” he said.

How first home buyers can make a move

Looking to get into the market while the conditions are in your favour?

Here are a few tips to get you started:

  1. Find out if you qualify for a loan – Talk to a lender to get an assessment of your financial situation. This will help you figure out if there are any changes to be made to get you where you need to be.
  2. Save as much as you can – A bigger deposit will give you more options and help you avoid paying LMI fees.
  3. Do your research – Understand the market you intend to buy in so you know how much to offer when the time comes.
  4. Get help from the experts – Don’t go on your buying journey alone! Enlist the help of professionals such as financial advisors, mortgage brokers, buyer’s agents and conveyancers.

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