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)|
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.
|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|
|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|
Photo by Tabitha Turner on Unsplash