First home buyers entering market five years earlier under homebuyer schemes, new data shows

author-avatar By on July 02, 2021
First home buyers entering market five years earlier under homebuyer schemes, new data shows

First home buyers are getting into the market five years earlier by accessing homebuyer schemes, Commonwealth Bank data shows.

According to the big four bank, customers nationally have bought property on average 4.78 years faster by using first home buyer schemes including the First Home Loan Deposit Scheme (FHLDS), or New Home Guarantee (NHG). 

First home buyers in New South Wales and Victoria were the biggest winners, with first home buyers there getting into the market an average of 5.05 years and 4.99 years earlier, respectively.

But the time saved by borrowers in other states and territories wasn't too far behind. First home buyers in the ACT saved themselves 4.53 years by accessing first home buyer schemes, while those in WA saved 4.50 years and South Australians saved 4.42 years. 

First home buyers in Queensland were able to enter the market 4.20 years faster, while those in Tasmania shaved four years off saving for a deposit.

State breakdown of average time saved by CBA customers using the FHLDS/NHG

State Average time saved (years)
NSW 5.05
ACT 4.53
VIC 4.99
QLD 4.20
NT 4.11
SA 4.42
WA 4.50
TAS 4.00

Source: CommBank

CBA's Executive General Manager of Home Buying, Michael Baumann, said the deposit hurdle is still the biggest challenge facing first time buyers.

"Our data shows CBA customers who have used one of these home buyer initiatives have been able to enter the property market nearly five years earlier on average than they would if they saved for the standard 20% deposit," Mr Baumann said.

He also said homebuyer grants have helped customers purchase all different kinds of properties in metropolitan and regional parts of the country.

"Speaking to our lenders and brokers we know the schemes have been a great success for a wide range of different customers – both singles and couples – looking to realise their home ownership goals across the country," Mr Baumann said.

"We’ve helped customers buy everything from a duplex in Padstow, to a townhouse in Umina Beach, an apartment in Coogee, and a newly built home in Box Hill."

It comes as the major bank opens its waitlist to new customers looking to apply for the existing FHLDS or NHG, or the new Family Home Guarantee, which allows single parents with dependent children to build or purchase a property with a deposit as little as 2%.

The Federal Government recently announced new property price caps for the FHLDS and the Family Home Guarantee to ensure more people can access the schemes amid booming property prices.

First Home Loan Deposit Scheme (FHLDS) price caps
Region Price cap from 1 July Previous price cap for FHLDS
NSW – Sydney, Newcastle, Lake Macquarie & Illawarra $800,000 $700,000
NSW – other $600,000 $450,000
VIC – Melbourne, Geelong $700,000 $600,000
VIC – other $500,000 $375,000
QLD –Brisbane, Gold Coast & Sunshine Coast $600,000 $475,000
QLD – other $450,000 $400,000
WA – Perth $500,000 $400,000
WA – other $400,000 $300,000
SA – Adelaide $500,000 $400,000
SA – other $350,000 $250,000
TAS – Hobart $500,000 $400,000
TAS – other $400,000 $300,000
ACT $500,000 $500,000
Northern Territory $500,000 $375,000

Source: NHFIC.

New Home Guarantee price caps
Region Price cap
NSW – Sydney, Newcastle, Lake Macquarie & Illawarra $950,000
NSW – other $600,000
VIC – Melbourne, Geelong $850,000
VIC – other $550,000
QLD –Brisbane,Gold Coast & Sunshine Coast $650,000
QLD – other $500,000
WA – Perth $550,000
WA – other $400,000
SA – Adelaide $500,000
SA – other $400,000
TAS – Hobart $550,000
TAS – other $400,000
ACT $600,000
Northern Territory $550,000

Photo by Tabitha Turner on Unsplash

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author-avatar
Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at Savings.com.au which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

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