First-home buyers need 4.5 years to save for deposit

Australian first-home buyers now take an average of 4.5 years to save up for a 20 per cent house deposit, new research shows.

The calculation by Bankwest reveals that housing affordability has worsened over the last 12 months as last year’s study put the average saving time at 3.7 years.

The Bankwest analysis also found that Australian couples now need to raise a deposit of $85,800 for a median-priced house, compared with $78,100 a year earlier.

Bankwest Retail chief executive Vittoria Scott observed that while Australia’s booming house prices have supported those already on the property ladder, they are severely hindering the ambitions of first-home buyers.

"While it’s clearly of enormous benefit to established home owners, it’s the complete opposite for many of their children. Many potential first-home buyers are facing long periods in the rental market," she said.

The growing challenge of securing a property has increased the need for first-time buyers to compare home loans in search of the most affordable deals. Some welcome news was offered to prospective borrowers today (July 6th) when the Reserve Bank kept interest rates on hold at 4.5 per cent.

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