The home deposit being put forward by first home buyers is now more than $100,000 as a supercharged property market forces more people to commit than save more.
Data from the Australian Bureau of Statistics found the average deposit needed to secure a mortgage is now a whopping $106,743, an increase of 16 per cent on January 2019.
Finder’s First Home Buyers Report 2021 now estimates it takes some first home buyers more than a decade to save the recommended 20 per cent deposit.
According to the research, it was buyers in the ACT who felt the biggest increase in the requirement of their home deposit.
In the Nation’s Capital, the average first home buyer deposit is now $117,790 to secure a $471,161 loan, an eye-watering lift of 24 per cent since 2019.
NSW still holds the record for the buyers most in debt, with first timers saving up $128,469 on average to borrow $513,876.
A full state-by-state breakdown, including the average size of the loan, can be found below.
Sarah Megginson, home loans expert at Finder said that saving for a house deposit is a big financial hurdle for first home buyers.
“Prospective buyers are being stumped by a supercharged property market, which isn’t showing any signs of slowing down just yet,” Ms Megginson explained.
“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.”
The findings come as Australia’s property market records its strongest rise in almost five years with the average price of a residential home now more than $720,000.
Month-on-month, the price of a median Aussie home is rising at its fastest rate in 32 years.
Despite the doom and gloom, Ms Megginson said there were incentives that first home buyers could take advantage of to enter the market.
“As part of the First Home Loan Deposit Scheme, eligible buyers can seek out a mortgage with a five per cent deposit,” Ms 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.”
AVERAGE FIRST HOME BUYER DEPOSIT STATE-BY-STATE
|
State |
Average first home buyer loan |
Average first home buyer deposit |
Increase since 2019 |
|
ACT |
$471,161 |
$117,790 |
24 per cent |
|
NSW |
$513,876 |
$128,469 |
23 per cent |
|
NT |
$400,000 |
$100,000 |
20 per cent |
|
TAS |
$325,751 |
$81,438 |
17 per cent |
|
VIC |
$452,369 |
$113,092 |
16 per cent |
|
WA |
$371,048 |
$92,762 |
14 per cent |
|
QLD |
$383,136 |
$95,784 |
13 per cent |
|
SA |
$342,840 |
$85,710 |
8 per cent |
|
Australia |
$426,971 |
$106,743 |
16 per cent |
Source: Finder, ABS loans data
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