Well, it seems the answer to that is a big Yes (provided you get your finances right – read more for tips on how to get a home loan).

First home buyer activity has significantly increased across Australia over the past few months, thanks to the measures taken by the Federal and state governments to help Australians trying to purchase their first home. (You can check your eligibility for the first home owner grant in your state, here.)

Is it the right time to purchase your first home?

Housing affordability across Australia in numbers

Talking of the past, a study by the Reserve Bank of Australia found that first home buyers could, on average, only afford about ten percent of the houses sold in Sydney in 2016.

Fortunately, things do seem to be changing for the better for the first home buyers in NSW, thanks to the affordability package rolled out by the state coupled with low-interest rate home loans available in the market.

In December 2017, the Real Estate Institute of Australia (REIA) released a media report pointing towards improved housing affordability across the country.

The report indicated that while Sydney and Melbourne remained challenging markets for first time buyers to crack, the housing affordability in NSW improved over the September quarter, as the proportion of income required to meet home loan repayments reduced to 36.1 percent, a reduction of 1.9 percent over the quarter (the figure is still 5.8 percent above the national average). The number of home loans granted to first home buyers increased to 6,775, a rise of 57.7 over the quarter and 70.9 percent compared to the same quarter in 2016.

In Victoria, home buyer activity increased by 32.2 percent over the September quarter, and the proportion of income required to meet mortgage repayments decreased by 1.2 percent to 32.2 percent.

“Housing affordability is still a concern, especially in Sydney and Melbourne, but the recent figures look promising, as more first home buyers are returning to the market,” says Linda, a mortgage broker. “Especially with low-interest rate deals that are currently available, prospective home buyers can lock in a great deal if they act now!” she adds.

Affordability and low-interest rates

It is true that housing affordability varies across the Australian capital cities, but low-interest rates have improved housing affordability throughout Australia, enabling buyers to save money in interest and pushing their borrowing capacity as well. Currently, it is possible to find home loan deals starting as low as 3.56 percent (variable), making housing a little more affordable in Australia.

“First home buyers must be made aware of different home loan features available in the market. Depending on their long and short-term financial goals, they can opt for extras such an offset account linked to their mortgage that could lead to significant savings over time,” says Linda, who believes the right home loan is the best way to make a home more affordable.

Mortgage brokers to your rescue

A mortgage broker is an expert who sieves out home loans from various lenders to find the best deals for his or her clients. Currently, mortgage brokers are responsible for more than half of the home loans in Australia, and this number is only going to increase.

Offering their services at no cost to you (the home buyer) in most cases, a good mortgage broker is a trusted friend with your best interests at heart. As a first home buyer, you can benefit tremendously by working with a broker who would not only find the best home loan deals for your situation but also do all the legwork on your behalf.

For example, even if you don’t have a 20 percent deposit saved up, but have enough disposable income to afford a mortgage, a broker can suggest low deposit home loan options that could help you buy your home sooner. It could be as simple as paying LMI or asking your parents for some help. Besides, your mortgage broker will help you calculate your borrowing capacity as well as home loan serviceability, making you understand how much home you can afford to buy comfortably, a necessary step to avoid mortgage stress in the future. Click here for tips on how to find a mortgage broker.

Here’s how a broker can empower your real estate journey:

  • Brokers don’t charge you any fees but are paid by lenders
  • Brokers have access to better interest rates and discounts from many lenders
  • Brokers offer you a wider choice of lending products
  • Brokers save you time, hassle and money by doing all the paperwork for you apart from guiding you to the right home loan products for your situation

Thanks to HashChing, now you can find verified mortgage brokers in your area on a sophisticated portal that features full broker profiles with reviews from real users. With access to interest rates from over 60 lenders across Australia, HashChing mortgage brokers offer you pre-negotiated home loan deals and on-demand service, saving you time, money and hassle.

Contact an expert to find the best home loan deals (fresh or refinancing) for you.


By Vidhu Bajaj,
HashChing Content Writer



HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.

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