Five reasons it’s a good time to be a first home buyer

11 October 2019

A lot's happening in the market to turn a first home buyer’s frown upside down. Here are five trends making it easier for first home owners to get a foot on the property ladder, brought to you by industry super fund-owned bank ME. 

1. Housing is more affordable

Home values nationally have dipped 7.6% since the market peaked, giving first home buyers a lot more bang for their buck.

2. The property market is trending upwards

As good as falling property values are to encourage home buyers into the market, a strong market allows first home buyers to purchase property with confidence. Home values nationally rose by 0.8% in August – the biggest monthly rise since April 2017*.

3. Interest rates are super low

Home loan rates are at never-before-seen lows. First home buyers are paying loan rates below 4%, and that’s pushing loan repayments down.

4. Lending rules have changed

Bank regulator APRA has changed its rules around how it requires lenders to assess home buyers’ ability to repay their loan by lowering the required assessment rates for home buyers. More Australians will have the opportunity to secure a home loan, and it may also mean you’re able to borrow more – putting your dream home a step closer. 

There’s a treasure trove of financial support

From the First Home Owner Grant to savings on stamp duty, first home buyers across Australia can tap into a treasure chest of support that can be worth tens of thousands of dollars. To see what’s available in your patch, head to your state/territory government website. 

Add these factors up, and it’s easy to see why first home buyers have plenty of reasons to smile. It’s is an ideal time to get into the market, but it’s important to see what’s right for your current circumstances.

*CoreLogic Hedonic Home Value Index, August 2019

This article is brought to you by ME. For more information, please visit Members Equity Bank Limited ABN 56 070 887 679 and Australian Credit Licence 229500.

The Trustee and ME are not agents or representatives of one another. The Trustee is not responsible for and does not accept liability for the products or services of ME. ME is an Australian credit licensee (Australian credit licence no. 229500). You should use your own judgement before taking up any product or service offered by ME. TWUSUPER invests in ME but does not receive any commissions as a result of members using ME products and services.

General advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, consider its appropriateness. Refer to our Product Disclosure Statements (PDS). The PDS is relevant when deciding whether to acquire or hold a product.

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