Why first home buyers are racing into the property market now

PHOTO: First home buyers

On Tuesday, the Australian Bureau of Statistics (ABS) released data that revealed that the volume of first home loans has jumped to the highest point since late 2009.

According to the data, in December of last year, the amount of first home loans for owner occupiers crept up by 6.2%, which equated to a monthly total of 9,606 loans. And the last time there was a larger monthly total was the same time of year ten years ago.

Nationally, these new numbers account for almost a third (30.2%) of all owner occupier loans taken out in December across the country.

“The good news is that First Home Buyer activity has stepped up even further since the start of this year,” Master Builders Chief Economist, Shane Garrett said.

“The new First Home Loan Deposit Scheme is already a big success and the official data will show more big gains for First Home Buyer once they are released.”

The First Home Loan Deposit Scheme was introduced by the Federal Government in 2019, and aims to help first home buyers get into the property market sooner by removing the burden of Lenders Mortgage Insurance (LMI) for borrowers with a deposit as little as 5%.