Official data released this week by the Australian Bureau of Statistics, shows that first home buyer loans are up a staggering 50% in Victoria and in 32% NSW - the highest levels since 2012. Let's have a closer look at why first home buyers are making substantial inroads into the home loans market, and what tools and incentives are available to first home buyers across Australia.
State and Federal government incentives for First Home Buyers, coupled with declining investor numbers are the two key factors to explain the increase in First Home Buyer loans.
The declining investor numbers, attributed largely to the Australian Prudential Regulation Authority's (APRA) restrictions has made room for first home buyers. But the main increase in first home buyer loans appears to have been driven by stamp duty relief and new home loan grants across Victoria and NSW.
The federal Government’s legislation, proposed from the May budget, to allow first home buyers to contribute up to $30,000 in pre-tax super to a deposit is still to pass the Upper House for approval.
Check out the link below on Domain.com’s up-to-date analysis on the various discounts, grants and schemes available for first home buyers.
For more information or advice on how to get started with your first home buyer loan, contact us a Collins Home Loans.