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Jessica Darnbrough
Now is a good time for first home buyers to jump on the property ladder, according to Mortgage Choice.
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In recent weeks many lenders have eased their lending criteria, which will serve to help first home buyers that do not have a huge house deposit.
Adelaide Bank has reintroduced lending up to 95 per cent LVR, while Westpac has extended its maximum LVRs to 92 per cent for new customers.
In addition, Mortgage Choice spokesperson Kristy Sheppard said house prices were beginning to stabilise, which means FHBs have not been priced out of the market.
“At present, we’re looking at higher than average property listings with lower than average competition between buyers. But it’s a cycle. As positive sentiment grows so too will demand, which may mean now is a good time to act. What prospective first homebuyers really need to do is explore their choices carefully – both property and mortgage wise – before leaping in too quickly.”
BIS Shrapnel managing director Robert Mellor agreed and told The Adviser that now was a good time for first home buyers to purchase a home.
According to Mr Mellor, the longer home buyers wait to jump onto the property ladder, the harder that jump will be.
“At the moment, the current housing conditions favour those that are already on the property ladder. Affordability will continue to worsen, so it is just going to get harder and harder for those that haven’t made the leap to do so,” he said.
