Homeowners Cutting Spending

Two-thirds of borrowers have cut spending to ensure they can manage their higher home loan repayments.

At the same time, the latest Mortgage Choice home Loan Report shows that four in five prospective buyers are continuing to make sacrifices to save for a deposit.

Takeaways, subscriptions, holidays and nights out are going by the wayside according to the report.

Mortgage Choice chief executive Anthony Waldron says that in addition to cutting costs to save for a deposit, a rising number of potential buyers – 45% – are looking for family financial help to get into the market.

“With each new hike, buyers are having to reassess their property plans and find new approaches to saving and planning,” he says.

Nearly 300,000 Australians have used the Australian Government’s 5% Deposit Scheme since it was introduced in 2020.

Housing Australia data says that since January 2020, almost 60,000 key workers, including teachers, nurses and emergency service workers have used the scheme.

A further 99,000 Australians living in regional areas and almost 6,000 single women have also used it to help buy.