First Home Buyer Statistics to Know Before You Apply

Buying your first home is one of the most significant financial decisions you'll make. For Geelong residents, understanding the current landscape of first home buyers can provide valuable context as you prepare your first home loan application. Let's explore the statistics that matter and what they mean for your journey into homeownership.

The Current State of First Home Buyers in Australia

Recent data shows that first home buyers represent approximately 30-35% of all owner-occupier home loan commitments across Australia. This percentage has remained relatively consistent, though it fluctuates based on market conditions and government initiatives.

Interestingly, the average age of first home buyers continues to rise, now sitting at around 34 years old. This reflects the time many Australians need to save a deposit and establish their careers before entering the property market.

The median property price that first home buyers are purchasing has also increased. In regional Victoria, including Geelong, first home buyers are typically purchasing properties between $450,000 and $650,000, though this varies considerably based on location and property type.

Deposit Sizes and Low Deposit Options

One of the most telling statistics relates to deposit sizes. Traditional wisdom suggested saving a 20% deposit was essential, but the reality is quite different:

• Approximately 45% of first home buyers purchase with a deposit of less than 20%
• Around 25% of first home buyers use a 10% deposit
• A growing number are utilising 5% deposit options through government schemes
• Some buyers are accessing gift deposits from family members to supplement their savings

The First Home Loan Deposit Scheme and Regional First Home Buyer Guarantee have made homeownership more accessible for those with smaller deposits. These schemes allow eligible buyers to purchase with as little as 5% deposit while avoiding Lenders Mortgage Insurance (LMI).

Interest Rate Trends for First Home Buyers

Interest rate choices significantly impact your first home budget. Current statistics show:

• Approximately 60% of first home buyers initially choose a fixed interest rate
• The remaining 40% opt for a variable interest rate or split loan
• Many first home buyers look for features like offset accounts and redraw facilities
• Interest rate discounts are often available for first home buyers with strong applications

The decision between fixed and variable interest rates depends on your personal circumstances, risk tolerance, and market conditions. Our team at Kardinia Finance can help you understand which option aligns with your first home buyer checklist.

Government Support and First Home Owner Grants

Statistics demonstrate that government support plays a crucial role in helping Australians achieve homeownership:

• Over 70% of eligible first home buyers take advantage of first home buyer stamp duty concessions
• First home owner grants (FHOG) in Victoria provide $10,000 for eligible purchasers of new homes
• The First Home Super Saver Scheme helps buyers save up to $50,000 through their superannuation
• Regional areas like Geelong often have higher property price thresholds for first home buyer eligibility

Understanding which first home buyer grants and concessions you qualify for is essential when planning your first home loan application. These benefits can save you thousands of dollars and make homeownership more attainable.

Home Loan Application Statistics

The process of applying for a home loan has evolved considerably. Current data shows:

• The average time from pre-approval to settlement is 60-90 days
• Approximately 80% of successful first home buyers obtain pre-approval before making an offer
• Multiple home loan application attempts are becoming more common as buyers compare home loan options
• First home buyers typically compare 3-5 different lenders before making a decision

Obtaining pre-approval provides confidence when making an offer and demonstrates to vendors that you're a serious buyer. It's an essential step in the home buying process.

What These Statistics Mean for Geelong First Home Buyers

Geelong's property market presents unique opportunities for first home buyers. The city's regional classification means residents may be eligible for additional support through the Regional First Home Buyer Guarantee. Combined with lower median property prices compared to metropolitan Melbourne, Geelong offers an attractive entry point to the property market.

When you apply for a home loan, your borrowing capacity will be assessed based on your income, expenses, and existing debts. Understanding your financial position before you begin searching for properties helps set realistic expectations and prevents disappointment.

Key Considerations for Your First Home Loan

As you prepare your first home loan application, consider these important factors:

1. Deposit Requirements: Determine whether you'll pursue traditional 20% deposit or explore low deposit options
2. Loan Features: Decide which features matter most - offset account, redraw facilities, or flexible repayments
3. Interest Rate Type: Consider whether fixed interest rate, variable interest rate, or a split loan suits your circumstances
4. Government Schemes: Check your first home buyer eligibility for various grants and concessions
5. Lenders Mortgage Insurance: Understand when LMI applies and how it affects your costs

At Kardinia Finance, we specialise in helping Geelong residents understand their home loan options and find solutions that match their circumstances. Whether you're based in Highton, Belmont, or Ocean Grove, our local knowledge combined with access to multiple lenders means we can help you find suitable home loan options.

The journey to homeownership requires careful planning and professional guidance. Understanding the statistics and trends affecting first home buyers provides context, but personalised advice tailored to your situation is invaluable.

Call one of our team or book an appointment at a time that works for you. We'll help you understand your first home buyer eligibility, explore available first home buyer grants, and guide you through the entire first home loan application process.