- 91% of respondents faced difficulty saving up for a 20% deposit.
- Just under half were seeking to buy within the next quarter.
- Most respondents were willing to seek a mortage broker for assistance.
Lenders mortgage insurance (LMI) provider, Helia, has recently released findings from its latest homeownership survey.
Surveying a total of 335 prospective first home buyers and recent home buyers over June 2023, they found that, while Australians looking to purchase their first home were reportedly feeling more despair as they struggled financially, they were more determined than ever to own their dream home.
Pauline Blight-Johnston, Helia’s Chief Executive Officer, said, “First-time buyers understand the long-term financial benefits of home ownership and are motivated to find ways to achieve this goal.”
Struggling in a higher interest-rate environment
The survey found that the rising interest rates, coupled with the cost-of-living crisis, soured the homeownership aspirations of many. 88% of the survey respondents said buying a first property is more challenging than ever. 91% said that they had trouble saving for a deposit. Half of all respondents considered abandoning their first home aspirations altogether.
Current homeownership sentiment
Undeterred by the spiralling home prices, more than 47% of prospective home buyers were actively researching and seeking to purchase within the next quarter, with 37% researching and seeking information and 10% actively looking to purchase within the next three months. Most of the remaining 53% were prepared to buy their first home or had made an offer, with 4% taking steps but having stopped.
With the inflationary environment diminishing their purchasing power, many prospective buyers sought alternative pathways to finance their first home, such as Lenders Mortgage Insurance (LMI), rent to own, and co-ownership.
Alternative pathways to home ownership
Seeking professional help to navigate the homeownership process
Would-be homeowners highlighted that they needed guidance on acquiring a home loan. 63% needed help with determining their borrowing limits, 60% on picking a home suitable for their finances, 56% on getting a loan pre-approval, and 55% on completing the final application.
Most respondents were willing to seek professional help to navigate the complexities of the homeownership process. 62% viewed mortgage brokers as a reliable source of information, helping them streamline the homeownership process and pick the loan most suited for their circumstances. 54% of recent home buyers responded that they engaged the services of a mortgage broker when they applied for their home loan.
The money management of homeowners
Belying their eagerness to fulfil their dream of owning their first property is the harsh reality of the poor economic conditions of late.
Only 17% followed a documented budget, while 44% said they saved small amounts regularly. A mere 26% reported consistently saving substantial portions of their income.
73% of home buyers could only access four or fewer months of income at a week’s notice. 19% expressed that they did not have enough money to cover their needs and wants, while 7% struggled financially.
