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

Ceyda Erem

17 Nov 2017

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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. Advertiser disclosure.

  • loans.com.au

    2.88% p.a.
    fixed 3 years

    2.89% p.a.

    $1234

    Product details Close details
    Fixed Home Loan

    Owner Occupier, Principal & Interest

    2.88% p.a.
    fixed 3 years

    2.89% p.a.

    This home loan is available for purchase or refinance, complete with 1, 2 or 3 year fixed rate options. Minimum 10% deposit required.

    Fixed Home Loan

    This home loan is available for purchase or refinance, complete with 1, 2 or 3 year fixed rate options. Minimum 10% deposit required.

    • 2.88% p.a.
      fixed 3 years

    • 2.89% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free up to $10,000 p.a.

    • no

    • no

    • $520

    • 90.00%

    • $50,000

    • $1,000,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

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

    Details Close

  • Greater Bank
    Mozo Expert Choice Badge" style="width:60px;">

    1.99% p.a.
    fixed 3 years

    3.35% p.a.

    $1234

    Product details Close details
    Discount Great Rate Home Loan

    LVR<90%, over $150k

    1.99% p.a.
    fixed 3 years

    3.35% p.a.

    Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.

    Discount Great Rate Home Loan

    Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.

    • 1.99% p.a.
      fixed 3 years

    • 3.35% p.a.

    • $180

    • $0.00

    • $300.00

    • yes - fee applies

    • yes

    • no

    • $180

    • 90.00%

    • $150,000

    • -

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Discount Great Rate Home Loan

    Details Close

  • Well Home Loans

    2.52% p.a. variable

    2.55% p.a.

    $1234

    Product details Close details
    Well Balanced

    Owner Occupier, Principal & Interest, LVR <90%

    2.52% p.a. variable

    2.55% p.a.

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

    Well Balanced

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

    • 2.52% p.a. variable

    • 2.55% p.a.

    • $785

    • $0.00

    • $300.00

    • yes - free

    • yes - free

    • Optional - $10 per month

    • $785

    • 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

    Details Close

  • Suncorp

    2.59% p.a. variable

    2.60% p.a.

    $1234

    Product details Close details
    Back to Basics Special

    LVR<90%, Owner Occupier, Principal & Interest

    2.59% p.a. variable

    2.60% p.a.

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more. Get a $2,000 cash bonus when you refinance with an eligible Suncorp Bank Home Loan of $250k+. T&Cs & eligibility criteria apply. Minimum 10% deposit.

    Back to Basics Special

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more. Get a $2,000 cash bonus when you refinance with an eligible Suncorp Bank Home Loan of $250k+. T&Cs & eligibility criteria apply. Minimum 10% deposit.

    • 2.59% p.a. variable

    • 2.60% p.a.

    • $0

    • $0.00

    • $350.00

    • Yes - free

    • yes - free

    • no

    • $0

    • 90.00%

    • $150,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Back to Basics Special

    Details Close

^See information about the Mozo Experts Choice Home loans Awards

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.