New ME figures show single women being priced out of property market
Record house prices across the country are making it harder for single Australians to enter the property market, with single women the hardest hit.
Data from 40,000 ME Bank home loans revealed that the number of single female mortgage loan applications has fallen by 14% over two years, compared to 5% for single men.
Single home loan applications through ME dropped by 9 points over the two year period to 35% of all loans, and Head of Home Loans, Patrick Nolan, indicated that high prices were making it difficult for many.
“Even as part of a couple, east coast property prices are out of reach for many Australians,” he said.
“But being single is not a reason to delay or forgo home ownership. Buying your own home is one of the smartest decisions you can make.”
While the number of singles applying for home loans dropped, the data revealed that the average nationwide loan size for single-mortgage applications increased by 9% to $355,000 over the two years.
Mozo’s mortgage repayment calculator shows that a single Aussie repaying a $355,000 loan with the average 4.40% variable rate would be paying $1950 a month over the course of 25 years.
In news that will surprise no-one, the average home loan amount for singles from New South Wales experienced the biggest hike in the country, with the figures showing a rise of 16% over two years to $422,000.
Despite the discouraging trend, Nolan pointed out that there were were still plenty of ways for singles to enter the housing market if they were prepared to think outside the box.
“There are number of strategies you can deploy such as investing or tapping into the bank of mum and dad. Alternatively, join forces with someone who isn’t your romantic partner such as a friend or family member.”
“It’s also important to arrange pre-approval for a home loan in advance to give you a good idea of what you can afford and not waste time looking at homes that are beyond your budget,” he said.
If you're looking to secure your pre-approval, give Mozo's home loan comparison tool a whirl to see some of the best packages available now.