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.


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
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