First-home buyers are putting off important life choices including having kids so they can buy property

First home buyers are making significant sacrifices so they get their foot on the property ladder. This is what they are doing to make their home ownership dream come true.

MANY aspiring first-home buyers are prepared to delay having a family just to get a foot on the property ladder, new results show.

And some are happy to bunker down with mum and dad for longer so they can pool together a decent-sized deposit.

A new survey from lender Bankwest showed 27 per cent of Millennials (23 to 38 year olds) would put off having children, while 22 per cent were willing to quit basic necessities including heating and cooling, and even forgoing meals.

And 28 per cent are staying at home with their parents to save.

Bankwest’s general manager of personal banking, Donna Dalby, said the research – which quizzed more than 1700 Australians – showed the Great Australian Dream remained alive and well.

“Home ownership is still a highly-valued goal for young Australians and they are willing to make sacrifices to make it happen,” she said.

“It’s really important in the home-buying journey once they have decided it’s a priority for them to talk to a lender or a broker so they can understand the deposit they need.”

Australian Bureau of Statistics data shows owner-occupier first-home buyers hit their highest levels in a decade in December 2019, up 21.3 per cent on loan commitments in December 2018.

First home buyers are making many sacrifices just so they can crack into the property market.

Mortgage Choice figures show it saw a 3 per cent increase in the number of first-home buyer loan applications from the 2017 financial year to the 2019 financial year, climbing to 17 per cent.

The Federal Government this year rolled out the First Home Loan Deposit Scheme, offering 10,000 spots to eligible applicants to help them get into the property market sooner.

The Commonwealth Bank, National Australia Bank and 25 smaller lenders are part of the scheme.

Aussie consumers are rushing to consolidate their debts

It allows borrowers to pay a 5 per cent deposit, and the Government acts as a guarantor for the remaining 15 per cent.

This means they can avoid expensive lenders’ mortgage insurance, which can cost thousands of dollars.

Home Loan Experts managing director Otto Dargan said the amount of money a first-home buyer needed for a deposit “depends on the state you are buying in, if you are buying a new property and which first home benefits are available”.

“Typically 5 to 10 per cent of the purchase price is needed as a minimum to cover the deposit and costs of buying,” he said.

@sophieelsworth

Originally published as First-home buyers are putting off important life choices including having kids so they can buy property