Who comes out on top?
Recent figures show first home buyers are turning the tide in their favour.
First timers have reached their highest levels since July 2015, now representing 14 per cent of the loans issued to owner occupiers, reports realestate.com.au.
Conversely, investor lending has slowed since new regulations were introduced to reduce high levels of investment loans. Investors are still active, but after two rate hikes on interest-only loans and investment loans, the cost of borrowing is giving first timers a competitive edge.
“It just goes to show there is no shortage of owner-occupiers waiting in the wings when investors get cold feet,” RateCity.com.au money editor Sally Tindall told realestate.com.au.
“Owner-occupiers with principal and interest loans are now paying an average of 80 basis points less than investors with interest-only loans, so it’s no wonder they are stepping up to the plate.”
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