Young Aussies to buy property in the next 5 years despite challenges, says Ubank

biracial couple looking to buy a house

It’s no secret that Aussies are nervous about the current housing market after nearly a year of consecutive cash rate hikes.

However, new research from Ubank shows that 7 out of 10 young Aussies are looking to enter the property market, and 47% of those looking to buy feel confident they’ll become property owners in the next 5 years.

Notably, Aussies using finance apps are twice as likely to consider entering the market.

“People are doubling down on savings, with young Australians estimating they have an average of $37,921.20 worth of personal savings. Unsurprisingly, those who intend to buy a property in the next 5 years have more personal savings than those who don’t,” says Ubank’s chief product officer of lending, Kanishka Raja. 

“We’re seeing greater care and consideration when it comes to spending, while those with big financial goals like homeownership remain determined. Aussies are resilient and it's encouraging to see people taking control of their finances and showing some confidence in the current climate. ”

However, the opposite could be said about current property owners.

Financial confidence is lower amongst current homeowners

Ubank’s research also has discovered that 55% of current homeowners are losing sleep over their finances. And 65% admit to going through financial stress.

“We’re seeing financial stress reported at some of the highest rates we’ve seen in a decade and our research shows homeowners are twice as likely to experience sleep loss due to thinking about their personal finances,” says Raja.

“For anyone in this position, speak to your bank, shop around for a lower rate, and prioritise gathering the information you need to have confidence in your mortgage.”

If you’re looking for more ways to save, consider refinancing your home loan. Start comparing some of the best rates on the market below.

Home loan comparisons on Mozo - last updated 1 March 2024

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  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.11% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

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  • Straight Up

    Obliterate, Owner Occupier, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.24% p.a.

    Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

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  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.64% p.a.
    fixed 3 years
    6.52% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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  • Straight Up

    Obliterate, Investor, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.34% p.a. variable
    6.34% p.a.

    Investors get a low variable rate depending on your deposit with Athena’s Straight Up Investor Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

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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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