Aspiring homeowners will need a six-figure deposit to purchase a property and 11% will now require more than a decade to get a deposit together, according to Finder.
Research from the Australian Bureau of Statistics (ABS) from January showed the average deposit to secure a mortgage was $106,743, an increase of 16% year on year.
Research from Finder’s ‘First Home Buyers Report 2021’ which surveyed 1,028 first home buyers found the ACT saw the largest house deposit increase since 2019, with the upfront amount required increased by 24% to $117,790, followed by New South Wales (23%; $128,469).
The report also found that the average first home buyer put down 20% of the purchase price as a deposit.
Sarah Megginson, home loans expert at Finder, said prospective buyers were being stumped by a supercharged property market, which was not showing any signs of slowing down just yet.
“Low interest rates have made it cheaper to pay down a mortgage, but this has pushed up property prices, making it even harder to save for a deposit,” Megginson said.
Over a third of respondents (38%) took between two and five years to save for their deposit, while 25% said it took them between five and 10 years.
Megginson said that government grants could help eligible buyers fast-track their dream of homeownership.
“As part of the First Home Loan Deposit Scheme, eligible buyers can seek out a mortgage with a 5% deposit,” Megginson said.
“This means that for a property worth $600,000, you’d only need to save $30,000 which is far more achievable than a six-figure sum, and can help younger buyers get into the market early.
“While this does increase the cost of the mortgage over its lifetime through interest, the gains you stand to make as the property increases in value over time could potentially outweigh the extra interest costs.
“It’s important first home buyers weigh up all of these pros and cons when considering a real estate purchase.”
Home loan and deposit required by state
|
State |
Average first home buyer loan |
Average first home buyer deposit |
Increase since 2019 |
|
ACT |
$471,161 |
$117,790 |
24% |
|
NSW |
$513,876 |
$128,469 |
23% |
|
NT |
$400,000 |
$100,000 |
20% |
|
TAS |
$325,751 |
$81,438 |
17% |
|
VIC |
$452,369 |
$113,092 |
16% |
|
WA |
$371,048 |
$92,762 |
14% |
|
QLD |
$383,136 |
$95,784 |
13% |
|
SA |
$342,840 |
$85,710 |
8% |
|
Australia |
$426,971 |
$106,743 |
16% |
Source: Finder, ABS loans. Analysis assumes a 20% deposit
