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

By Ceyda Erem · · 3 min read
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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.

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Last updated 30 October 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $4,106
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $4,106
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $4,106
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $4,106
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    5.89 % p.a.
    Fixed 5 years
    Comparison rate
    6.62 % p.a.
    Initial monthly repayment
    $4,266

  • Variable Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.98 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $4,308
    Go to site

    Competitive variable rate on up to a 30 year loan term. No application fees to pay. Unlimited additional repayments. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.22 % p.a.
    Initial monthly repayment
    $4,359
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Discounted Home Value Loan

    • Owner Occupier
    • Principal & Interest
    • LVR 80-90%
    Interest rate
    6.39 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $4,499

    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).

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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.

* 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.

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