First home buyers are spoilt for choice when it comes to mortgage choices, but finding the right one is one of the most stressful parts of buying a first home, new research has found.
The latest Homebuyer Barometer from non-bank lender homeloans.com.au has shown that securing the most appropriate home loan is the second most stressful tasks for first home buyers, behind finding the right property.
“Navigating the maze of mortgages is obviously overwhelming for many first home buyers, with more than one in five Homebuyer Barometer respondents across the country citing that as the greatest stress in buying a home,” homeloans.com.au spokesperson Will Keall said.
He also said for those in Queensland, it is only marginally less stressful than finding the right property, at 25 per cent vs 28 per cent.
Nationally, as many as 38 per cent said finding the right property is the most stressful part of buying a first home, while less than 20 per cent said saving for a deposit comes in in third.
Almost two-thirds of those who have other debt opted to reduce it before saving for a deposit.
Respondents in NSW are most likely to have had debt to repay at 43 per cent, while those living in Victoria and Western Australia are least likely, at around 33 per cent.
Millennials have the greatest debt to pay, at over $10,000, while those aged between 45 and 64 have the smallest, at less than $5,000.
Overall, it has taken between one and five years for more than half of the respondents to save a deposit, with those in WA proving themselves the better savers – almost a third have saved for a deposit in under a year.
Queenslanders aren’t far behind, with over 28 per cent taking less than a year to save a deposit. However, it is more of a struggle for those in NSW, where almost a quarter of respondents have taken more than five years to save.
While around 74 per cent relied on their own savings, as many as 12 per cent used money from their parents as the great source of their deposit.
Again, those in WA prove themselves as the stronger savers, with 79 per cent using their own hard-earned money to go towards a home deposit.
In NSW and Queensland, more respondents rely on parental help, at 15 per cent and 16 per cent respectively.
Despite the stresses involved, almost a quarter of all survey respondents do buy a home.
Around 41 per cent purchase a home to renovate. Also overwhelming is the fact that around 71 per cent purchase a freestanding home and 12 per cent purchase an apartment.