Australian First Home Buyers Struggling to Save Deposit The Australian property market continues to pose significant challenges for first home buyers, with a new study revealing that three-quarters are failing to raise the 20% deposit required for a home loan. Many are turning to Lenders Mortgage Insurance (LMI) or relying on financial support from the "bank of mum and dad" to make up the shortfall.
The Helia Insurance study of over 1,000 first home buyers found that almost 90% agreed it was harder than ever to buy their first property. To cope, 55% used LMI, 45% relied on parental assistance, 48% accessed government schemes, and 39% worked overtime to save more. The high cost of living and expensive housing market is seriously affecting first home buyers' ability to save, with 18% currently not saving any money and 35% considering giving up on buying a home.
The report also highlighted the sacrifices first home buyers are making, including cutting back on dining out, hobbies, holidays, and even limiting electricity use and medical treatment. The property market's continued upward trajectory, driven by housing shortages and strong demand, is making it increasingly difficult for first-time buyers to enter the market.
