RBA boss says now is a good time to buy your first home

RBA governor Philip Lowe has said now is a good time for first home buyers to get on the property ladder.

RBA governor Philip Lowe has indicated that now is a good time for first home buyers to get a foot on the property ladder, saying that current conditions have titled the market decidedly in their favour.

Speaking at a parliamentary panel in Canberra on Wednesday, Lowe was asked if young Australians should take advantage of the current interest rate environment and consider purchasing their first home.

While he was reluctant to provide any sort of financial advice, the RBA boss admitted that “it's actually a good time, if you're a first home buyer, to buy the property you've wanted.”

"And many first home buyers must agree with me because demand from first home owners at the moment is very strong,” he said.

Along with record low rates, there are several government programs designed to help young Australians, including the First Home Owners Grant, which subsidises the purchase or construction of new homes, and the First Home Loan Deposit Scheme.

Lowe brushed aside concerns that an influx of buyers would send prices soaring, arguing that growth in the market will be restrained by international border closures and weak population growth.

He also weighed in on the federal government’s proposal to revise responsible lending obligations, saying it’s “the right direction to be heading in.”

The changes hope to free up the flow of credit by allowing banks to take applicants at their word when disclosing income and spending, rather than relying on their own verification processes.

How is the economy faring?

At the same panel, Lowe was fairly upbeat about the direction the country was heading, saying that economic performance had exceeded expectations and recovery was underway.

The latest figures show the economy growing in both the September and December quarters. He also told the parliamentary committee the RBA expects GDP to grow by 5% next year and then by 4% over 2022.

While these are promising developments, Lowe said the path to recovery will be “uneven and bumpy,” with some parts of the economy faring better than others. 

The labour market continues to struggle, with unemployment currently sitting at 7% and expected to remain above 6% in two years’ time. Wages will likely remain subdued until jobs recover.

And while confidence has picked up on news of a vaccine, Lowe said the central bank did not believe it will be widely available to most Australians until late next year.

If your job is secure and you’re confident you can service a mortgage, browse our first mortgage guide for helpful tips. And to get an idea of the rates currently available, visit our home loans comparison page, or browse the selection below.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 471 home loans.
Last updated 23 July 2024 Important disclosures and comparison rate warning*
  • Discount Great Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%, over $150k

    interest rate
    comparison rate
    Initial monthly repayment
    6.04% p.a. variable
    6.06% p.a.

    An easy to use Home Loan with no establishment fee and no monthly or annual fees. Minimum deposit of 20% is required. Mozo Experts Choice Awards - Investor Home Loan Award 2024^.

  • Basic Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    6.25% p.a.
    fixed 3 years
    6.20% 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 $10,000,000.

  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

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

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).


* 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.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.