Australia’s homebuyers are entering the property market up to five years sooner due to homebuyer grants, research shows.
New data from the Commonwealth Bank has revealed customers have bought property, on average, 4.78 years faster using the First Home Loan Deposit Scheme (FHLDS) or New Home Guarantee (NHG).
CBA’s Executive General Manager of Home Buying Michael Baumann said that it’s well known that saving for a deposit is one of the biggest challenges facing first homebuyers and those re-entering the property market.
“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”, he added.
According to the data, eligible buyers based in NSW and Victoria had their deposit saving time shortened the most, given that the average property price is higher in those markets. However, the time saved by borrowers in other states and territories wasn’t too far behind.
Baumann said the government grants and schemes hadn’t just helped home buyers enter the market faster, they had also helped customers purchase different types of properties in both metropolitan and regional areas.
“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”, he 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.”
The Government recently announced new property price caps for the FHLDS as well as the Family Home Guarantee, which applied to all new reservations from 1 July.
Under the FHLDS (New Homes) scheme (also known as NHG), first home buyers (FHBs) seeking to build a new home or purchase a newly built home will be able to do so with a deposit of as little as 5%.
A further 10,000 places have been opened up under the FHLDS for the 2021-22 financial year, doubling the maximum annual number that was originally available.
