FHBs Spending More First Home Buyers are borrowing almost $75,000 more than they were just four years ago, according to analysis by Loan Market.
It shows they are borrowing $73,894 more than they did before the pandemic, with the average FHB now borrowing $511,209.
Increasing house prices and higher interest rates mean, first-home buyers need to fork out more to get into the property market.
Despite this, they remain active with the Australian Bureau of Statistics (ABS) Lending Indicators showing FHBs made up 37% of owner-occupied loans in April 2024, a 5.2 percentage point increase since the start of the pandemic.
The analysis also shows that only 3% have had to resort to lending with a guarantor loan and only 2% have needed to take out Lenders Mortgage Insurance (LMI) which is necessary to take out a loan with a deposit of less than 20%.
Loan Market broker Youeil Shol says first-home buyers still want to get into the market and are finding ways to overcome current challenges.
