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FIRST HOME BUYERS
FOMO driving first home buyers With rising house prices and record-low interest rates, there’s been a sense of urgency among first home buyers over the last 18 months. Genworth’s latest research shows exactly where the opportunities lie for mortgage brokers
REASONS FHBS NEED BROKER SUPPORT % Yes
2021
2020
Reviewing the contract and any other legal paperwork 46.4% 44.3%
Determining the right loan for my needs 41.6% 41.3%
Determining my borrowing capacity 40.8% 35.3%
The Genworth report shows that 77% of prospective first home buyers are finding it difficult to save for a deposit, and each year fewer first home buyers intend to put up a deposit of 20% or more. Interestingly, a higher percentage of buyers who had recently bought their first home thought saving for a deposit was difficult – suggesting that saving for a deposit is even harder than many anticipate.
“The common barrier for both recent and prospective first home buyers when saving to purchase property is the continually increasing size of the deposit” Pauline Blight-Johnston, Genworth
Applying for a loan 40.6% 44.3%
Getting pre-approval for a loan 39.9% 37.0%
Note: Graph represents top five responses; multiple answers were allowed Source: Genworth First Home Buyers Report, 2021
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THE NUMBER of first home buyers reached a 12-year high in February 2021, and although it has since dropped back down slightly, the numbers for June are still 50% higher than they were a year ago. First home buyers seem convinced that now is a good time to buy. In fact, two in three prospective first home buyers think that is the case, according to Genworth’s First Home Buyers Report for
2021. Nine in 10 of those buyers cited potential future property price increases as the reason, with seven in 10 driven by ‘FOMO’ (fear of missing out). First home buyers have also been buoyed by government incentives as well as record-low interest rates, but it has still not been easy, and they are certainly facing their fair share of challenges – even without the resurgence of COVID-19 uncertainty.
Genworth CEO Pauline Blight-Johnston says education is “fundamental” to preparing first home buyers for this. “The common barrier for both recent and prospective first home buyers when saving to purchase property is the continually increasing size of the deposit required in a housing market where prices are escalating,” she says. Other challenges perceived by first home buyers include housing affordability, finding
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23/08/2021 9:23:43 am
