The average deposit for a first home buyer is $100,000 as the property market booms

First home buyers now put down more than $100,000 to secure their home deposit. This is because the property market has exploded and people are more inclined to save than to buy.

According to data provided by the Australian Bureau of Statistics (ABS), the average deposit needed to secure a mortgage loan was $106,743, This is an increase by 16 percent compared to January 2019.

Finder’s First Home Buyers Report 2021 predicts that some first-home buyers will need to save 20% more than a decade.

Research found that buyers in the ACT felt a greater need for a home deposit.

The Nation’s Capital average home buyer deposit is $117 790. That’s enough to get a loan of $471161. This is an amazing increase of 24% from 2019.

NSW is still the best-ranked state for buyers who have the highest amount of debt. First-time homebuyers can borrow $513.876, and save $128.469 on average.

Below is a breakdown of each state and the average loan amount.

Sarah Megginson, Finder’s home loan expert, stated that saving money for a down payment on a house can be a major financial hurdle.

Ms Megginson stated that potential buyers are left confused by a volatile property market that isn’t slowing down.

“Low interest rates make it cheaper to pay down a mortgage. This has made it harder to save for a deposit as the property prices have risen.

These findings come as Australia’s property markets record their strongest growth in nearly 5 years. The average residential home now costs more than $720,000

The median home in Australia is growing at the fastest rate in 32 years.

Ms Megginson stated that first-time buyers can take advantage of incentives to help them get on the market, even if it seems impossible.

Ms Megginson stated, “The First Home Loan Deposit Scheme” allows eligible buyers to apply with a mortgage with a deposit of 5%.

This means that you will only need $30,000 to save on a property worth $600,000.00. This is much more affordable than a six-figure sum, and can help younger buyers get into the market early.

Although this could increase the cost of your mortgage over the life of the loan through interest, the potential returns that you can make as the property’s values rise over time could be more than the additional interest costs.

AVERAGE FIRST HOMEBUYER DOWNLOAD STATE BY-STATE

State	Average first home buyer loan	Average first home buyer deposit	Increased since 2019
ACT	$471,161	$117,790	24 per cent
NSW	$513,876	$128,469	23 per cent
NT	$400,000	$100,000	20 per cent
TAS	$325,751	$81,438	17 per cent
VIC	$452,369	$113,092	16 per cent
WA	$371,048	$92,762	14 per cent
QLD	$383,136	$95,784	13 per cent
SA	$342,840	$85,710	8 per cent
Australia	$426,971	$106,743	16 per cent

Source: Finder, ABS loans data

You can redeem $100 grocery gift vouchers to determine the value

Lender	Name of the card	Register points	Burn rate $100 egift card	Value of points	Annual fee	Annual fee (s) minus the value of pts	Rate	Pay attention	Other perks
Citi	Prestige (Citi Rewards)	200,000 points	20,900	$957	$700	$257	21.49%	High annual fees	By accumulating points or continuing rewards, you can get travel deals.
Bank of Melbourne St George, BankSA	Amplify Signage – Rewards	2 years, 200,000 points	22,800	$878	$279	$320	19.74%	To obtain total pts you will need 2 annual fees	Ongoing rewards points, 2 lounge passes / yr, insurances.
ANZ	Black Rewards	180,000 points	22,225	$810	$0 in Year 1. Then $375	$810	20.24%	High annual fees will apply if your card is not cancelled within one year. High interest rates	Insurances and ongoing reward
Westpac	Altitude Black (Rewards).	150,000 points	23,500	$638	$250	$388	20.49%	High interest rates and an annual fee	Ongoing rewards pts, insurances, 2 lounge passes /yr
Citi	Premier	130,000 points	20,900	$622	$150 in yr 1 and $300 in yr 2.	472	21.49%	High interest rates. High cancellation fees after one year.	Insurances and ongoing benefits
NAB	Rewards Signature Card	120,000 points in 2 years	19,230	$624	$295	$34	19.99%	You will need to pay two fairly high annual fees in order to get your total points	Insurances and ongoing reward
CBA	Diamond Awards	120,000 points in 2 Years	20,650	$581	$349	-$117	20.24%	To receive your total points, 2 annual high fees will be required. High interest rates	Insurances and ongoing reward
ANZ	Rewards Platinum	120,000 pts	22,225	$540	$0 in Year 1. $95 thereafter	$540	20.24%	High interest rates	Insurances and ongoing benefits
Bankwest	More World Mastercard	115,000 Points	40,000	$288	$270	$18	19.99%	The minimum card spend for bonus points is $84K per annum. Sometimes, points are worth half as much as other reward programs.	Ongoing rewards, 10 lounge visits, insurances
Suncorp Bank	Clear Options	100,000 points	20,900	$478	$129	$349	20.74%	High interest rates	Insurances and ongoing reward

SOURCE: RateCity          

This website is intended to provide general information only and not to be a source or financial advice. This information was not prepared taking into account your financial situation, personal goals, or specific needs. Before you act, make sure to evaluate the suitability and relevance of any information on this website in light your financial situation, objectives, needs, and goals.