First-time home buyers search for cheaper properties

First-time home buyers are looking for cheaper and smaller houses in their attempt to break into the property market, a new survey has found.

The latest Bankwest/Mortgage and Finance Association of Australia (MFAA) survey found that buyers are also increasingly turning their back on super-sized "McMansions", with 47.9 per cent of first-time buyers now looking to purchase a cheaper property than otherwise intended.

"The financial crisis has changed the aspirations of home buyers, effectively downsizing the great Australian dream," said Phil Naylor, chief executive officer of MFAA.

Among other findings, 43.8 per cent of the 850 first-time buyers surveyed said that they were toning down their lifestyle in favour of having more savings should the economy deteriorate further.

The findings will serve as encouragement to Aussies who decide to compare home loans and compare savings accounts in search of the best deals for their money.

This week Lisa Montgomery, head of consumer advocacy at Resi Mortgage Corporation, told the Australian Associated Press that people with high credit card limits are less likely to be approved for a home loan.

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