According to data from the Australian
Bureau of Statistics (ABS), the average amount needed to secure a mortgage in
Australia is $106,743 for a 20% deposit. This represents a sharp increase over
the last two and a bit years, with the average deposit today 16% higher than it
was in January 2019. While low interest rates and rising prices are good news
for existing home owners, potential first time buyers are being forced to wait
for longer and make more compromises along the way.
As you might expect, the situation is not
the same across the country. Buyers in the ACT are dealing with the biggest
deposit increase, with the average first home buyer deposit now $117,790 to
secure a $471,161 loan. Deposit amounts have risen by a staggering 24% since
2019 in the nation's capital, with many people now priced out of the market.
NSW is not far behind with a 23% increase since 2019, followed by the NT at
20%, Victoria at 16%, WA at 14%, QLD at 13%, and SA at 8%.
In NSW, which has traditionally been the
most heated market in Australia, first timers need to save $128,469 on average
to borrow $513,876. In Victoria, it's $113,092 to borrow $452,369, and in
Queensland it's $95,784 to borrow $383,136. Due to high prices in Sydney and
select regions, NSW still holds the record for the buyers most in debt. The
median Aussie home value is rising at its fastest rate in 32 years according to
the ABS, and is now sitting at more than $720,000.
According to separate data from CoreLogic,
the combined capital city median for a house is $681,880, with the median
national unit price much lower at $551,048. The median price for a house in
Sydney is currently $875,000, followed by Canberra at $816,000, Melbourne at
$730,000, Hobart at $598,500, Brisbane at $550,000, Darwin at $532,000,
Adelaide at 523,000, and Perth at $515,000.
According to Finder's First Home Buyers
Report 2021, some first home buyers take more than a decade to save the
recommended 20% deposit: "Prospective buyers are being stumped by a
supercharged property market, which isn't showing any signs of slowing down
just yet... Low interest rates have made it cheaper to pay down a mortgage, but
this has pushed up property prices, making it even harder to save for a
deposit." said Sarah Megginson from Finder.
It's not all bad news, however, with first
home buyers given more opportunities to enter the market well below the
standard 20% threshold. According to Ms Megginson, "As part of the First
Home Loan Deposit Scheme, eligible buyers can seek out a mortgage with a five
per cent deposit... This means that for a property worth $600,000, you'd only
need to save $30,000 which is far more achievable than a six-figure sum, and
can help younger buyers get into the market early."