Number of first-time home loans customers 'may decline'

Monday 19 October 2009

Article by Mozo

There may be a decline in the number of people taking on home loans, it has been claimed.

According to the Real Estate Institute of Australia (REIA), first-time buyers may refrain from purchasing new houses as a result of the roll-back of government stimulus, News Limited reports.

REIA president David Airey pointed out that the number of people buying their first property has started to drop already, adding that this trend is likely to continue.

He predicted this would have an effect on the $250,000 to $450,000 house price range, which is the typical margin first-time buyers tend to aim for.

Mr Airey offered advice for people stepping onto the property ladder – potentially including those looking for low interest home loans – to be selective about houses.

He said people should not overpay or feel compelled to buy.

"Do your research and in particular ensure you are not buying above the limits of your financing and borrowing ability," Mr Airey commented.

Mortgage holders were recently advised to pay off their home loans as if the interest rate is higher in order to create a financial buffer and get ahead with repayments by Mortgage Choice.

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