NAB says only 1 in 4 Aussies think 2022 is a good year to buy a home

Aerial view of Australian houses.

Only a quarter of Australians think 2022 is a good year to buy a home, according to new research from NAB. 

Meanwhile, rising inflation has impacted renovators hoping to upscale, with half of renovators claiming surging costs have hindered their ability to complete repairs. Now, only 18% intend to upgrade their existing home.

This report aligns with a larger narrative of financial hesitancy in 2022. Aussies may be more cashed up than ever, but the turning economic climate has hit the brakes on any house-spending urgency.

RELATED: Australians struggling to pay bills and save an emergency fund, says NAB

Buyer mood cools as the property market shifts

According to NAB, around 28% of Australians reckon now is a good time to take out a home loan, while only 13% intend to buy property at all this year. In the same vein, only a third of Australians believe now is a good time to renovate.

A competitive property market, soaring prices, and a rising cost of living may be contributing to the hesitation. 

The NAB executive chief of home ownership, Andy Kerr, says that budgeting has become a primary concern for Australians. “Customers are telling us the amount they’re prepared to borrow to buy a home is the most important factor,” he explains.

Unable to borrow as much as they want or save or a hefty deposit, many Australians may find their dream home out of reach for now.

There could be relief on the horizon. Experts believe slowing auction sales rates and burgeoning supply are poised to drive down prices by 2023, which comes as welcome news for many first-home hopefuls. 

However, experts also predict the RBA will raise the cash rate by August, which will drive up variable rates on home loans and disincentivize new buyers.

RELATED: 5 things you should know about the Australian property market in 2022

“Regardless of if you’re looking to buy or renovate,” says Kerr,  “it’s important to ensure you can appropriately manage your repayments, both today and in the future.”

Home loan and property research may be the game changer for first home buyers

There are strategies available to first home buyers looking to break in. These include:

In any case, home loan research is key to reading the mood of Australia’s market. 

Browse a selection of home loans below.

Compare and save on home loans - last updated 13 August 2022

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  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% p.a.

    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 30% deposit required.

    Details
  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. 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 in as little as 10 minutes.

    Details
  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

    Details
  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.

    Details
  • Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.60% p.a.variable for 24 months and then 4.00% p.a. variable
    3.96% p.a.

    Already includes July RBA rate increase. New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

    Details
  • PAYG Investor Loan

    Investment, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.64% p.a. variable
    3.68% p.a.

    Low variable rate. Ideal for investors buying or refinancing. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

    Details
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.74% p.a.variable for 12 months and then 4.23% p.a. variable
    4.22% p.a.

    Already includes July RBA rate increase. 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.

    Details

* 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, loan amount and term entered. 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.

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