First home buyers optimistic about buying a property, says Westpac

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.

Home loan comparisons on Mozo

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Last updated 18 June 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • The Better Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR<80%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

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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.

* 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.

^See information about the Mozo Experts Choice Home Loan Awards

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