Property buyers delay plans due to COVID-19, finds Gateway Bank
![First home buyers are delaying their plans to buy property due to COVID-19.](https://cdn.mozo.com.au/images/atwood/10795/first-home-buyers-delay-property-plans.jpg)
Fifty-two per cent of first home buyers have delayed their plans to purchase property due to the COVID-19 pandemic, according to new findings from Gateway Bank. Meanwhile, 16% have put their plans on hold indefinitely.
“As more people are being forced to spend their deposit savings on basic living expenses, the prospect of buying a property is now even more elusive,” said Gateway Bank chief executive officer, Lexi Airey.
In a survey of 700 Australians hoping to buy their first home, Gateway Bank found that half have been forced to dip into their deposit savings. Of this group, 45% did so to cover day-to-day expenses, while 17% used their savings to help a family member experiencing financial stress.
Perhaps most shocking, 16% of potential first home buyers admitted to draining most of their deposit in the months since the pandemic struck.
For many, recovering lost savings won't come easy, especially at a time when job insecurity is on the rise and ties to employment are only being preserved through government largesse.
In fact, according to the research, 56% of first home buyers believe it will take them an additional one to three years to save up a deposit, while 25% expect to be saving for at least another three years.
Is there any support available to first home buyers?
While the dream of home ownership has been pushed back for many, hopeful buyers shouldn’t despair. Airey reminds Australians there are several government programs designed to help first home buyers get a foot on the property ladder.
These include the First Home Owners Grant (FHOG), which subsidises the purchase or construction of new homes, along with the First Home Loan Deposit Scheme (FHLDS), which allows borrowers to buy a home with a deposit of as little as 5%.
Unfortunately, many Australians are still in the dark about these programs. The survey conducted by Gateway Bank found that only 56% of respondents were aware of the FHOG, while only 32% knew about the FHLDS.
Other measures like stamp duty concessions and the First Home Super Saver Scheme have also escaped the attention of all but 24% of respondents. Meanwhile, 22% of those surveyed weren’t aware of any government schemes whatsoever.
“Awareness of these measures is generally quite low, and those looking to enter the property market for the first time could be missing out on an opportunity to put their pre-COVID home ownership plans back on track,” Airey said.
For a quick overview of the support available to first home buyers, along with more relevant tips, browse our first mortgage guide. And if you want an idea of where rates currently sit, head over to our home loans comparison page, or check out the selection below.
Home loan comparisons on Mozo
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Featured Product
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Unloan Variable
Owner Occupier, LVR <80%
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Initial monthly repayment5.99% p.a. variable5.90% p.a.Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
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Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
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- 5.99% p.a. variable
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- 5.90% p.a.
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- 5.99% p.a. variable
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- 5.90% p.a.
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- $0
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- $0.00
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- $10,000
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Discount Great Rate Home Loan
Owner Occupier, Principal & Interest, LVR<80%, over $150k
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Initial monthly repayment6.04% p.a. variable6.06% 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^.
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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^.
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- 6.04% p.a. variable
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- 6.06% p.a.
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- 6.04% p.a. variable
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- 6.06% p.a.
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- $180
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- $300.00
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Read our Mozo Review to learn more about the Greater Bank Discount Great Rate Home Loan
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Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR<70%
interest rate
comparison rate
Initial monthly repayment6.25% p.a.
fixed 3 years6.20% 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.
CompareCompareBasic Home Loan
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.
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- 6.25% p.a.
fixed 3 years
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- 6.20% p.a.
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fixed 3 years
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- 6.20% p.a.
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- $350
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- 70.00%
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- -
Read our Mozo Review to learn more about the Macquarie Basic Home Loan
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Discounted Home Value Loan
Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment6.14% p.a. variable6.14% 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).
CompareCompareDiscounted Home Value Loan
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).
- interest rate
- 6.14% p.a. variable
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- Upfront fees
- $0
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- $0.00
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- $300.00
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- Maximum loan to value ratio
- 80.00%
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- Variable
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Read our Mozo Review to learn more about the HSBC Discounted Home Value Loan
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Featured Product
Mozo experts choice awards won:
- Low Cost Home Loan - 2024
Unloan Variable
Investment, LVR <80%
interest rate
comparison rate
Initial monthly repayment6.29% p.a. variable6.20% p.a.Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
CompareCompareUnloan Variable
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- interest rate
- 6.29% p.a. variable
- comparison rate
- 6.20% p.a.
- interest rate
- 6.29% p.a. variable
- comparison rate
- 6.20% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
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- Principal & Interest
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* 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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