One in four believe now is a good time to buy a home: NAB

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on March 24, 2022 Fact Checked
One in four believe now is a good time to buy a home: NAB

According to new NAB research, a quarter of Australians still believe now is a good time to buy a home.

The latest NAB Behavioural Special Insight Report shows renovation costs are rising, while increased supply is creating positive sentiment for buyers. 

According to data from 2,000 respondents, one in two Australians renovating their home believe it’s harder to complete in the past three months, with 60% signalling it had become more expensive.

NAB said 28% of Australians think now is a good time to get a mortgage and 13% of Australians intend to buy a home in the next 12 months, the same as the previous quarter.

NAB executive of home ownership Andy Kerr said house price growth could ease in 2022 as more supply hits the market.

"Australians remain positive about the property market, with a quarter saying now is a good time to buy a home," Mr Kerr said.

"This is in line with last quarter, a time when it became clear price growth was slowing.

"We currently expect more subdued property price growth in 2022, with gains of around 3% compared to 21% in 2021.

"However, the market remains competitive and for many Australians buying a home can be a daunting experience."

See Also: Could super be used as collateral to buy a house?

2021 set some buyers back 10 years

According to affordable housing body PowerHousing Australia, price increases from one year can conservatively set Australians with a budget back up to 10 years in loan repayments.

CEO of PowerHousing Australia Nicholas Proud said those who used 'The Bank of Mum and Dad' to get a foot on the property ladder could experience stress to meet repayments down the road when interest rates rise. 

"With the RBNZ signalling in the last week a 2.4% rise in cash rate by 2024, and Australia poised to follow, the payback period only gets longer," he said.

"Rents have never been so high and the Reserve Bank raising of interest rates across 2022 through to 2024 will only see a flow through to rents continuing to rise causing more pain for younger low-income renters.

“Whilst a paper gain may be there today, it has only pushed younger generations and low income earners further out of reach."


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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 25, 2022. View disclaimer.


Image by Steven Su via Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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