First home buyers could become more active over the coming 12 months.
According to Genworth Financial’s latest Home Buyer Confidence Index, recent first home buyers have shown they are comfortable with high debt levels, which may encourage others in to the market.
The mortgage insurer’s chief commercial officer Bridget Sakr said while affordability remained a key concern for first home buyers, many wanted to step onto the property ladder sooner rather than later.
As such, Ms Sakr said these buyers would follow the lead of other FHBs and take out a high LVR loan.
“Our March Index showed us that first home buyers are, overall, more comfortable with higher debt and LVR lending than any other home buyer. This trend can be attributed to the housing appreciation we have seen over the last few years,” Ms Sakr told Real Estate Business.
“First home buyers know that to realise their dream of home ownership, high LVR lending is inevitable.”