As home loan costs grow in 2024, Aussie buyers look for a boost

By JP Pelosi · · 2 min read
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Family at a Sydney home

The number of people looking for a helping hand when buying a property has increased in 2024, despite more buyers going solo.

New data from CommBank shows that 40% of first home buyers purchased a property alone rather than with a partner, friend or family member in the first six months of 2024, up from 35% 2019.

But despite this jump, data from the bank also found the proportion of first home buyers using government funded guarantees has increased in recent years. 

Between FY21 and FY24, use of first home buyer guarantees soared 45%, says CommBank.

Executive general manager home buying at CommBank, Michael Baumann says with property prices rising consistently and the current cost of living pressures, it's not surprising to see first home buyers looking at all of the options available to them.

Such options might be in the form of innovative loan types, loan policy or government grants and incentives.

“CommBank is an active participant in all of the different government guarantee schemes, and our network of lenders are well positioned to help first home buyers navigate the process of buying a home and applying for the relevant grants,” Baumann said. 

Rising home costs has seen home loan sizes grow

Across Australia, the national average first home buyer home loan size was $497,692 in FY24, according to CommBank.

The data shows that city-based first home buyers had an average home loan size of $529,642 compared to $403,203 for regional based first home buyers. 

While the average loan size for regionally based first time buyers was lower than those buyers based in the cities, their average loan-to-value-ratio (LVR) was higher.

According to CommBank data, the average LVR for regionally based first time buyers was 86 per cent in FY24 - a touch higher than the 82% average LVR for those first-time buyers who purchased in the cities.

“We know that on average, regional properties are cheaper than metro-based dwellings and often sit on larger land lots – which could be attractive especially for some customer segments,” Baumann said. 

“Given the greater level of housing affordability in the regions, these areas often provide first home buyers with the perfect opportunity to take their first step into the market.”

If you're looking to buy and are ready to get a home loan, be sure to check out some of the top home loans in the Mozo database shown below. 

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Last updated 16 September 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
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    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
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    Comparison rate
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    Initial monthly repayment
    $3,027
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    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.99 % p.a.
    Fixed 2 years
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • 3 Year Special Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $2,899
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    This home loan is available for purchase or refinance, complete with 1, 2 or 3 year fixed rate options. Minimum 10% deposit required.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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