Generational demand sees loans to first-time homebuyers hit an all-time high

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NAB data revealed loans to first-time buyers hit a new record in April, but the rush to regional areas stalled.

According to the Big Four banks, loans to the group in the first four months of the year were 67% higher than at the same time last year.

Queensland was the best performer, with loans to first-time buyers from January to April up 94% from the same period last year, with Western Australia not far behind, up 92%.

Some of the biggest jumps in loans were seen in suburbs like Fortitude Valley in Queensland, up 486%, Payneham in Adelaide, up 473%, and Rhodes in Sydney, up 291%.

The data showed that outer metropolitan suburbs were the most in demand, while downtown apartments gained more attention as buyers sought out areas with moderate price growth.

NAB homeownership manager Andy Kerr said the level of activity from first-time homebuyers was nothing like what he had seen in a generation.

“Record interest rates and government incentives continue to support demand and it’s great to hear stories of some customers buying their first home earlier than expected,” Kerr said.

“However, we also recognize that rising house prices are creating a challenge for some Australians as supply levels remain below average.”

Loans to first-time buyers from January to April were up only 9% from the last four months of last year, led Victoria, driven entirely by metropolitan areas.

Despite being the year-over-year leader, NSW and ACT saw a drop (-4%) in lending in the first four months of 2021 compared to the last four from 2020.

The regional boom slows down to start the year

Regional regions across the country saw an 84% increase in first-time homebuyer activity, while metropolitan areas grew 65% from a year ago.

However, compared to the last four months of last year, regional first-time homebuyers activity fell 4% from January to April, compared to a 13% increase in metropolitan areas.

“First-time buyers seem to react to price changes, as our list of hot spots has changed considerably since then. December, with only five Australia-wide zip codes on both lists, ”Kerr said.

“Melbourne has been following every other city in first-time homebuyer activity last year largely due to the impacts of COVID-19 and we’ve seen an element of catching up this year.

“It has been interesting to see activity slow down in regional areas compared to the last few months of last year, but over a 12 month period it is clear that the sea and tree change has been incredibly popular. for first-time buyers. “

NAB’s New Home Loan First Deposit Spots

The data coincides with the start of acceptance by the NAB of applications for places for the next cycle of the First Home Loan Deposit Scheme (FHLDS), before the publication date of July 1.

“We have received very strong demand for the First Home Loan Deposit Scheme and are delighted to reopen our doors to clients interested in buying their first home with the support of the program,” said Mr. Kerr.

“We expect the interest to be incredibly strong again.”

The FHLDS was renamed the New Home Guarantee in this year’s federal budget and allows 10,000 first-time homebuyers each year to buy a home with as little as a 5% deposit without paying for mortgage insurance. lenders.


Photo by Kelly Sikkema on Unsplash


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