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

    1.99% p.a.variable for 12 months and then 2.48% p.a. variable

    2.47% p.a.

    $1234

    Product details Close details
    Smart Booster Home Loan

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.

    • 1.99% p.a.variable for 12 months and then 2.48% p.a. variable

    • 2.47% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • Optional - with 0.10% additional interest

    • $520

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Smart Booster Home Loan

  • Athena

    2.19% p.a. variable

    2.19% p.a.

    $1234

    Product details Close details
    Celebrate Variable Home Loan

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

    • 2.19% p.a. variable

    • 2.19% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 60.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Celebrate Variable Home Loan

  • UBank

    2.34% p.a. variable

    2.34% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    • 2.34% p.a. variable

    • 2.34% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 80.00%

    • $100,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

  • Virgin Money

    2.04% p.a.
    fixed 3 years

    2.73% p.a.

    $1234

    Product details Close details
    Special Offer Reward Me Fixed Rate Home Loan

    Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.

    • 2.04% p.a.
      fixed 3 years

    • 2.73% p.a.

    • $450

    • $10.00 monthly

    • $350.00

    • yes - up to $10,000 per annum

    • no

    • no

    • $450

    • 80.00%

    • $300,000

    • -

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • $3,000 cashback for new borrowings of at least $300,000 with applications made by 22 Jan 2021 and settled by 23 April 2021.

    Read our Mozo Review to learn more about the Special Offer Reward Me Fixed Rate Home Loan

  • Macquarie

    2.09% p.a.
    fixed 2 years

    2.56% p.a.

    $1234

    Product details Close details
    Basic Home Loan

    Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.

    • 2.09% p.a.
      fixed 2 years

    • 2.56% p.a.

    • $0

    • $0.00

    • $400.00

    • yes - free

    • yes - free

    • no

    • $0

    • 80.00%

    • $150,000

    • $750,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Monthly

    Read our Mozo Review to learn more about the Basic Home Loan

^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.