But one in 10 first home buyers are giving their buying power a big boost thanks to government schemes.
Almost 33,000 borrowers accessed the First Home Loan Deposit Scheme (FHLDS) or the New Home Guarantee (NHG) since 1 January 2020, reports Savings.com.au.
The schemes allow first time buyers to pay only a 5 per cent deposit, and avoid pricey lenders’ mortgage insurance, because the government essentially goes guarantor. Thanks Scotty!
Queensland buyers have flocked to the schemes in droves, making up 26 per cent of FHLDS guarantees issued and 27 per cent of NHGs.
Property prices are capped in the schemes and it appears buyers are willing to move to secure a first home in their price range.
Buyers moved an average of 8.4km from their current residence under the FHLDS and 13km under the NHG, according to data from the National Housing Finance and Investment Corporation (NHFIC), which runs the scheme.
“The interstate migration to the regions is particularly noteworthy and reflects a trend we have seen since COVID-19,” said NHFIC CEO Nathan Dal Bon.
“This is particularly pronounced in Queensland which has been the greatest benefactor of interstate migration.”
Wondering how a government scheme could help save you time and money? Contact us for a chat.