First home buyer numbers have plummeted to their lowest levels in four years, as the property market boom continues to push them away.
Figures from Australia’s biggest mortgage broker, Australian Finance, reported a sharp slowing of mortgage growth and a big drop in first home buyer numbers.
AFG showed they processed $3.9 billion of new home loans in August, but only 9.5 per cent were for first home buyers.
Of all the home loans processed by AFG last month, NSW was hit the hardest with only 3.5 per cent of all loans being first home buyers – a far cry from its peak of 21.1 per cent in 2011.
In Queensland, first home buyer numbers comprised just 5.5 per cent, in Victoria 9.4 per cent, SA 9.8 per cent, NT 13.9 per cent, and WA 21 per cent.
AFG chief executive Peter White said in his four decades in the mortgage industry it had never been as tough as now for first-time buyers.
“Government grants are forcing you down the path of building a new home, but building is more expensive,” he said.
“The first home buyer market now seems to be harder than it’s ever been.
“Some lenders are also changing their rules. If you don’t have at least a 10 per cent deposit and have been banking with them for six months or have a credit card with them, they won’t accept you,” he added.