New leaders in the property game? - Victorian first homebuyers now occupy 18.5% of the market

Ceyda Erem

17 Nov 2017

redactor/hero-images/176/vic-homebuyers_content.jpg

New leaders in the property game? - Victorian first homebuyers now occupy 18.5% of the market

  • Victorian first homebuyers now occupy 18.5% of the market

  • During the September quarter, the number of first homebuyers rose by 32.2%

  • This jump has been in response to stamp duty concessions that were introduced back in July

The pressure to meet tighter lending criteria is not a worry for many Victorian first homebuyers who now occupy 18.5% of the market first time in four years, according to recent figures by the Housing Industry Association and the Australian Bureau of Statistics.

During the September quarter, the number of first homebuyers rose by 32.2% and is said to be in response to stamp duty concessions that were introduced back in July.

Put into effect on July 1, the changes mean that Victorian buyers purchasing homes under $600,000 were permitted a stamp duty exemption, along with stamp duty discounts on property buys up to $750,000 - with savings as much as $10,955 up for grabs on a $499,000 home.

“The last time they were at 18.5% of the market was August 2013 and they got down as low as 13.9% of the market in February this year,” said HIA Principal Economist, Tim Reardon.

RELATED: Australia’s 7 best home loans of 2017 (for every borrower)

According to Reardon, an increase in apartment availability has also “brought (first homebuyers) back to the market”.

NSW also saw a huge boost in buyers by 57.7%, which has also been as a result of stamp duty changes. Queensland experienced a 4.5% increase, 2% in South Australia and a minor 1.6% in Tasmania.

“It’s not surprising to see that the stamp duty concessions have had this effect on the market, plus other factors like coolin investor interest and plateauing prices contributed to the spike in first home buyer activity as well,” said Mozo Property Expert, Steve Jovcevski.

“Now the thing is, with first home buyers who were previously priced out of hubs like Sydney and Melbourne returning to the market and propping up demand, I think prices won’t get much lower. That means young buyers have a limited window to get a foot on the property ladder.”

If you’re just about ready to apply for a loan, here’s a quick look at what your repayments might look like or access even more options with our home loan comparison tool.

First home loans - rates updated daily

  • Promoted

    loans.com.au

    3.04% p.a. variable

    3.06% p.a.

    $1234

    Product details Close details
    Essentials Variable 90

    This low-rate home loan that could save you thousands! With no monthly or ongoing fees and the ability to make unlimited additional repayments. This home loan from popular online lender loans.com.au also features unlimited free redraws with no minimum redraw amount.

    • 3.04% p.a. variable

    • 3.06% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 90.00%

    • $50,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Essentials Variable 90

  • Promoted

    Tic:Toc

    2.79% p.a. variable

    2.80% p.a.

    $1234

    Product details Close details
    Variable Home Loan

    Get full approval online. Award-winning platform could save you thousands with super-low rates. No application, valuation or settlement fees. Fee-free redraws and extra repayments. Optional offset account for $10 per month. Winner of a Mozo Experts Choice Award 2019 for Online Home Lender of the Year 2019.^

    • 2.79% p.a. variable

    • 2.80% p.a.

    • $0

    • $0.00

    • $325.00

    • yes - free

    • yes - free

    • Optional - $10 per month

    • 90.00%

    • $50,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Variable Home Loan

  • Promoted

    Well Home Loans

    2.92% p.a. variable

    2.96% p.a.

    $1234

    Product details Close details
    Well Balanced

    A low rate home loan for variable owner occupied loans, up to 90% LVR and no fees. Winner of a Mozo Experts Choice Award 2019 for the Best New Home Loan.^

    • 2.92% p.a. variable

    • 2.96% p.a.

    • $785

    • $0.00

    • $300.00

    • yes - free

    • yes - free

    • Optional - $10 per month

    • 90.00%

    • $200,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Well Balanced

  • Promoted

    Newcastle Permanent

    3.19% p.a. variable

    3.59% p.a.

    $1234

    Product details Close details
    Discounted Variable Home Loan Premium Plus Package

    With competitive interest rates for all types of borrowers, no application fees and flexible features like an offset account and redraw facility the Newcastle Permanent Discounted Variable Home Loan (Premium Plus Package) could be a great all round option.

    • 3.19% p.a. variable

    • 3.59% p.a.

    • $0

    • $395.00 yearly

    • $0.00

    • yes - free

    • yes - free

    • yes

    • 90.00%

    • $150,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Discounted Variable Home Loan

  • Promoted

    Easy Street

    2.95% p.a. variable

    2.99% p.a.

    $1234

    Product details Close details
    Standard Variable Home Loan - New Money Offer

    100% offset account. $0 monthly fees, $0 annual fees and free redraw. Borrow up to 95% of the property value with Lenders Mortgage Insurance.

    • 2.95% p.a. variable

    • 2.99% p.a.

    • $500

    • $0.00

    • $300.00

    • yes - free

    • yes-free

    • yes

    • 95.00%

    • $50,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Standard Variable Home Loan - New Money Offer

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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.

Things to consider when choosing a home loan 

The type of interest rate - There are a few different types of home loan to choose from. A variable interest rate is a rate adjusted by changes in the market, whereas a fixed rate will remain the same for whatever term you choose, usually up to 10 years. The type of interest rate you choose can make a difference to your financial ability to meet repayments, so make sure to consider all options.

The bonus features - Many home loans provide flexibility when it comes to making  extra repayments to pay off your loan amount quicker and save on interest. The ability to use features like redraw facilities and repayment holidays will also come in handy in case of emergencies, while offset accounts can help you pay your loan off faster.

Low deposits and LMI - Many of us find it difficult to save up for the 20% deposit, so it’s good news that you have the option of applying for a low deposit loan. However, the big thing to consider when applying a low deposit loan is paying Lenders Mortgage Insurance (LMI) - a type of security that protects your lender in the event that your fault on your repayments, and could cost you a few thousand dollars extra.

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.