New data shows first home buyer schemes are shaving five years off saving for a loan deposit

There has been a big change in property trends, according to new research, that amounts to good new for first home buyers.

Prospective home buyers looking to enter the property market for the first time are shaving nearly five years off saving for a loan by accessing deposit schemes offered by the government.

New data from the Commonwealth Bank has found customers nationally, on average, have been able to buy a home 4.78 years faster if they had accessed either a First Home Loan Deposit Scheme (FHLDS) or New Home Guarantee (NHG).

New South Wales and Victoria, two of the more dearer housing markets, recorded the biggest benefit.

First home buyers in NSW saved themselves 5.05 years by accessing one of the two schemes, Victorians were able to shed 4.99 years in savings time, while South Australians were 4.42 years faster.

Queenslanders were able to buy a home 4.2 years quicker and West Australian saved 4.5 years.

Home buyers using first home loan deposit schemes are buying houses quicker. Picture: Joel Carrett / NCA NewsWire

Schemes such as the FHLDS have been implemented by both state and federal governments to assist first home buyers in entering the property market by lowering the hurdles to gain access.

The FHLDS, offered by CBA, NAB and a number of smaller banks, enables a first-time buyer to acquire a home loan with only a five per cent deposit instead of 20 per cent.

A 20 per cent deposit is usually needed to avoid paying lenders mortgage insurance.

CBA’s findings coincide with the banks beginning to open up new application spots for the schemes in the new financial year.

CBA’s home buying executive, Michael Baumann, said saving for a deposit is the biggest challenge for people trying to buy a home.

CBA, NAB and a number of small lenders are offering loans on the First Home Loan Deposit Scheme. Picture: Supplied

He also noted the government schemes were assisting in the uptake of property purchasing across the country and not just supporting new housing developments.

“Speaking to our lenders and brokers, we know the schemes have been a great success for a wide range of different customers – both singles and couples – looking to realise their home ownership goals across the country,” Mr Baumann said.

“We’ve helped customers buy everything from a duplex in Padstow, to a townhouse in Umina Beach, an apartment in Coogee and a newly built home in Box Hill.”

According to CBA, 6400 customers have been able to buy a home sooner because of first homebuyer schemes.

The federal government recently announced new property price caps for the FHLDS and the Family Home Guarantee.