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 28 March 2024

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  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.40% p.a.

    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.

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    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

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    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 2 years
    6.24% p.a.

    Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.

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  • Basic Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.13% p.a.

    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.

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  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

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  • Basic Home Loan

    Owner Occupier, LVR 60-70%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.17% p.a.

    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. 30% Deposit required.

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    Home Variable Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.95% p.a. variable
    5.95% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

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  • OMG Home Loan

    Owner Occupier, Principal & Interest, <60% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    6.00% p.a.

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

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* 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.

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