According to the latest First Home Owner Survey by Mortgage Choice, more than 55% of first home owners said they bought property to “set themselves up financially” for the future.
Despite the fact that property prices are rising across most property markets, the majority of first time buyers still see buying property as an important and financially savvy decision.
Today’s first home buyers are very financially literate. They understand that buying a home takes patience, sacrifice and due diligence.
Data from the Mortgage Choice First Home Owner survey found more than 70% of first home buyers knew their exact mortgage rate and understood exactly how much of a rate rise they could afford before they faced financial strain.
Pleasingly, more than one third of first time owners said they could easily afford interest rate rises of at least 2%. And, given that the lenders historically move their interest rates in small incremental amounts (e.g. 0.15% - 0.25%), the majority of first time owners are in a good financial position.
Indeed, the data would suggest first time owners are in a good financial position because they did a lot of preparation before purchasing their property.
When asked whether or not they made sacrifices to their lifestyle in order to save the deposit for their first home, 73% said yes, with the vast majority indicating that they “cut back on spending”.
It would appear buying property is not a decision that first home buyers make lightly. They do their research and take their time when deciding on a property, with 70% of respondents indicating that they searched for the “right home” for more than six months before buying.
Furthermore, more than 60% of respondents said they saved for their home deposit for more than 2 years, so they had plenty of time to review their options and ensure property ownership was the right move for them.
During their search for the perfect home and mortgage, the vast majority of first time buyers said they engaged a mortgage broker and, as a result, felt “well educated” on the process.
With that in mind, if you are in the market for a property, it may pay to speak with a professional mortgage broker.
At Mortgage Choice, we have access to hundreds of home loan products from our panel of lenders, so we can help you find the right home loan product for your needs.