First home buyers optimistic about buying a property, says Westpac

Monika Gudova

14 Nov 2018

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Adulting isn’t always easy, and buying a home can seem like a mountain that’s impossible to climb. However, in our dropping property market, Westpac research has revealed that first home buyers are feeling more optimistic about getting a foot on the property ladder.

Westpac’s 2018 Home Ownership Report has revealed that 62% of first home buyers are more optimistic about getting a foot on the property ladder than last year, and 81% of this group believe they’re now closer to buying a home.

“The surge in confidence and positivity among first home buyers is great to see, and not surprising considering house prices have on average dipped by 2.7% over the past year to date, primarily driven by the Sydney and Melbourne markets,” said Westpac Head of Home Ownership, Lauren Fine.

“However, despite this optimism, a key barrier to first home buyers achieving their dream home remains saving enough for a deposit and upfront costs.”

The research found that although three quarters of first home buyers had concerns about the upfront investment of buying a home, including paying a deposit, stamp duty and settlement costs, many were still eager to enter the property market.

“We’re seeing more first home buyers find new ways to achieve their dream of home ownership, like seeking a second income or taking on extra hours at their job to help get a foot on the property ladder,” said Fine.

45% of first home buyers said they were willing to get another job or work overtime to save up some extra cash. If not pick up extra work, almost all (96%) first home buyers said they were willing to make compromises to achieve their home buying dreams.

And it doesn’t stop there, the report found that 29% of survey respondents were not only looking to buy a home in the next five years, but also an investment property.

If you’re ready to take a dip into the property pool, remember to first test the waters by getting pre-approval on a great rate home loan. Check out the offers below to snag yourself a competitive deal, or head to our home loan comparison tables to find more.

Find a home loan

Rates updated daily. Advertiser disclosure.

  • loans.com.au
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    1.85% p.a.variable for 24 months and then 2.25% p.a. variable

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    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <70% LVR

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    A hot new super low introductory rate home loan for two years with no monthly or ongoing fees. loans.com.au has some of the fastest settlement times on the market. They can meet 30-day settlement timeline so you can start saving thousands, as soon as possible! Mozo award-winning online lender, friendly and local Australian based team. min 30% deposit.

    Smart Booster Home Loan

    A hot new super low introductory rate home loan for two years with no monthly or ongoing fees. loans.com.au has some of the fastest settlement times on the market. They can meet 30-day settlement timeline so you can start saving thousands, as soon as possible! Mozo award-winning online lender, friendly and local Australian based team. min 30% deposit.

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  • UBank

    1.75% p.a.
    fixed 1 year

    2.31% p.a.

    $1234

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    UHomeLoan

    Owner Occupier, Principal & Interest

    1.75% p.a.
    fixed 1 year

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    Fast, easy apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans.

    UHomeLoan

    Fast, easy apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans.

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    • 80.00%

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  • Athena
    Mozo Expert Choice Badge" style="width:60px;">

    1.99% p.a. variable

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    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

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    • $100,000

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    • Variable

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  • Macquarie

    2.09% p.a.
    fixed 3 years

    2.32% p.a.

    $1234

    Product details Close details
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    2.09% p.a.
    fixed 3 years

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    • $0

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    • $400.00

    • yes - free

    • yes - free

    • no

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    • 70.00%

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  • Yard
    Mozo Expert Choice Badge" style="width:60px;">

    1.99% p.a. variable

    2.02% p.a.

    $1234

    Product details Close details
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <70%

    1.99% p.a. variable

    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st July 2021. Low Cost Home Loan winner in the Mozo Expert's Choice Awards for 2021.

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    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st July 2021. Low Cost Home Loan winner in the Mozo Expert's Choice Awards for 2021.

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    • $849

    • 70.00%

    • $150,000

    • $1,500,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • Special rate applies to home loan applications submitted by 31 July 2021.

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    Details Close

^See information about the Mozo Experts Choice Home loans Awards

Questions to ask yourself before getting on the property ladder

Whether or not you’re confident about your home-buying prospects, there are a few things you should know before you take the plunge. We’ve rounded up five questions to test yourself with before entering the property market:

1. Am I good at keeping a budget? Building good money habits when you’re buying a home is important for more than just keeping up with your home loan repayments. Home insurance, utilities and general maintenance are all recurring costs you’ll need to budget for, so make sure you’re keeping an eye on your spending.

2. How much can I afford to borrow? Champagne tastes on a beer budget won’t get your far, so knowing how much you can borrow can be make-or-break in the home buying process. Get a good idea of your borrowing power with Mozo’s home loan borrowing calculator.

3. Do I have a sizeable deposit? If your deposit is under 20%, you’ll have to pay thousands in lenders mortgage insurance, so although some lenders will let you borrow with a deposit as low as 5%, consider taking the time to save up a bigger deposit.

4. Will I be able to keep up with repayments? The upfront cost of buying a home is one thing, but the decades-long commitment to monthly repayments is something a lot of first home buyers overlook. Take a look at how much you might pay to service your loan with our mortgage repayments calculator.

5. Can I manage an interest rate rise? If like most Aussies you opt for a variable rate home loan, there’s a possibility your rate could change at any time. Use our home loan rate change calculator to see how your repayments would change if interest rates hiked up.