Research commissioned by mortgage broker Aussie Home Loans has found that COVID-19 has dampened the hopes of many people in the property market, despite the 'perfect storm' of opportunities whipped up by the pandemic.
The mortgage broking house surveyed nearly 2,800 Aussies in June 2020.
Of those, close to 1,900 had housing plans to achieve within five years, such as buying a new home or downsizing.
But two thirds of respondents with plans said the pandemic has made them uncertain about reaching their property goals.
More than half said they feel "nervous" about investing in property, with 70% saying job security and saving money are more challenging now.
Over a third are also saying they are focusing more on building their savings than they were prior to the pandemic.
Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.
Lender | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Variable | More details | ||||||||||||
| FEATUREDOnline ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase | loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)
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loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)
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| Variable | More details | ||||||||||||
| FEATUREDRefinance OnlyApply In Minutes | Unloan – Variable Rate Home Loan – Refinance Only
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Unloan – Variable Rate Home Loan – Refinance Only
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| Variable | More details | ||||||||||||
| FEATURED | Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)
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Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)
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- Immediate cashback upon settlement
- $2000 for loans up to $700,000
- $4000 for loans over $700,000
Aussie's chief customer officer David Smith said the extent to which the crisis was unsettling Australians could lead to 'missed opportunities' in the property market.
“In a market which sees property prices across Australia’s capital cities continuing to fall, interest rates remaining the lowest on record, a range of refinancing options, access to lender cashback incentives, and a range of government initiatives and grants available, there are many opportunities for both first home buyers and homeowners to secure their goals," he said.
First home buyers under the pump
Coinciding with Aussie's survey findings, Gateway Bank has revealed 68% of first home buyers have been forced to put their plans on hold during the pandemic.
Gateway's survey also found half of first home buyers have tapped into their deposit during the pandemic, with 80% also reporting they will need to save for an additional year to get their deposit.
Forty five per cent directed their withdrawn funds to day-to-day expenses, while 36% put it towards an emergency fund.
Just over one in ten re-directed their deposit money to sharemarket investments.
Despite the pandemic's hit to first home buyers' savings, Gateway's CEO Lexi Airey said the "dream of home ownership remains alive".
"Some first home buyers are taking advantage of Government Schemes in a bid to circumnavigate the need for a 20% deposit," Ms Airey said.
However, the survey also indicated more than one in five first home buyers were unaware of any available government schemes.
Ms Airey pointed towards various initiatives such as the first home owners' grant (FHOG), the first home loan deposit scheme (FHLDS), the first home super saver scheme (FHSSS), and stamp duty concessions.
“These schemes and other options such as lenders mortgage insurance or a family guarantee are designed to help first home buyers purchase their property sooner," she said.
"Awareness of these measures is generally quite low, and those looking to enter the property market for the first time could be missing out on an opportunity to put their pre-COVID home ownership plans back on track."
Need somewhere to store cash and earn interest? The table below features introductory savings accounts with some of the highest interest rates on the market.
Provider | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 4 | 0 | 0 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
| FEATURED | High Interest Savings Account (< $250k)
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High Interest Savings Account (< $250k)
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| 0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
| FEATURED | Savings Maximiser (<$100k)
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Savings Maximiser (<$100k)
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| 0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
| FEATURED | Saver Account (<$250k)
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Saver Account (<$250k)
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| 4 | 0 | 0 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
Savings Account (Amounts < $250k)
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Savings Account (Amounts < $250k)
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| 0 | 2000 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Home Saver
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Home Saver
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| 0 | 200 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
| No monthly fees | Save Account
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Save Account
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| 0 | 2000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
HomeME Savings Account ($0 - $100,000) | |||||||||||||
| 0 | 200 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Growth Saver ($1 - $25k) | |||||||||||||
| 0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Target Saver | |||||||||||||
| 0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
| For customers aged 14-35 years | |||||||||||||
Future Saver Account ( < $50k) | |||||||||||||
| 0 | 500 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Goal Saver
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Goal Saver
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| 0 | 1000 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Boost Saver | |||||||||||||
| 0 | 0.01 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Reward Saver Account (31 years +) ($0-$100k) | |||||||||||||
| 0 | 100 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Bonus Saver Account (Amounts < $100k) | |||||||||||||
| 0 | 20 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Reward Saver Kick Start (Amounts ≤ $1m) | |||||||||||||
| 0 | 0.01 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Life (< 30 years) (Monthly deposit) | |||||||||||||
| 5 | 0 | 0 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | ||||||
NetBank Saver | |||||||||||||
| 0 | 0 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
ANZ Save | |||||||||||||
| 0 | 5 | 0 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Young Saver Account | |||||||||||||
| 0 | 50 | 1 | $product[$field["value"]] | $product[$field["value"]] | $product[$field["value"]] | More details | |||||||
Save up | |||||||||||||
Ready, Set, Buy!
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