First Home Buyers See Home Loan Inflation

bad credit home loans||home loan inflation

In the past two years the average home loan amount for first home buyers has risen by 23% showing home loan inflation. This increases fears as the Government incentives for young buyers have been said to be falsely inflating the market.

The average home loan amount increased from $228,600 to $280,600 a massive $52,000 in just two years. The significant increase in first home buyers in recent months has seen first home buyers become an important part of the residential home loan market.

The actual number of first home buyers also rose sharply; rising from just over 9,000 to more than 14,400 in the past year. With so many first home buyers entering the market home loan inflation could make it harder to buy.

First Home Owners Grant

The Federal Government’s First Home Owners Grant provides up to $21,000 for those building new homes and $14,000 for those purchasing established homes. This initiative is being progressively phased out, and will be obsolete after the end of the year.

What a lot of people believe the government incentives appear to have done, is transfer the money from those who are borrowing money to buy their first homes into the pockets of those who are selling at a more attractive price.

A worrying fact is the increasing rate of unemployment in the current economic climate. This leads to concerns of unpaid debt which ultimately may lead to a further increase in home repossession in the future.

Before your debt or home loan repayments become impossible to repay, call the Australian Lending Centre on 1300 138 188 to discuss your options to manage your debt effectively.

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

jobseeker changes
Jack Richings

Jobseeker Changes Incoming…

The Government brought in financial incentives to help Australians through the COVID-19 crisis. However, from 25th September, jobseeker changes are coming in…

Read More
personal loans with no credit check
No Credit Check Loans
Jack Richings

Personal Loans With No Credit Check

Personal loans are a great cash injection. Do you want a quick & easy option with no impact on your credit score? Consider personal loans with no credit check.

Read More
Australian Economy 2020
Jack Richings

Australian Economy 2020

Bush fires, drought, flooding & the Covid pandemic have made 2020 a year to never be forgotten. But how has this affected the Australian Economy 2020? Find out.

Read More
what is debt management
Debt Management
Diane Challis

What Is Debt Management?

Ultimate Debt Management Guide – We discuss the difference between good vs bad debt & give tips on how to escape debt. Find out what is debt management here…

Read More