FHB scheme applicant trends revealed

The scheme allows up to 10,000 first home buyers (FHBs) per financial year to secure a home loan with a deposit as low as 5 per cent, without paying lender’s mortgage insurance.

Singles earning up to $125,000 and couples earning up to a combined $200,000 have access to the scheme, in which the government underwrites the difference between the borrower’s savings and the required 20 per cent deposit to secure a home loan.

Based on applications for the scheme logged through the Aussie broker network to date, single applicants accounted for 42 per cent of applications to the scheme, with couples making up 54 per cent of the scheme.

Further, the data collected found that 52 per cent of single or joint applicants in the scheme were female.

According to the major brokerage, over 40 per cent of applicants were aged between 20 to 30 years, while 37 per cent were aged between 30 and 40.

A further 20 per cent of applicants were aged between 40 and 50 years, with the oldest FHB profile aged 53 years old. 

The average age of FHBs taking advantage of the scheme through the Aussie network was 33 years.

Aussie chief executive James Symond said the applicant trends also differed depending on geographical location.

“Sydney and Melbourne first home buyers in particular are likely to be older, given the rate at which property prices in the two capitals have outstripped the growth in incomes in recent years,” Mr Symond said.

“The process of buying your first home can seem daunting and complex however old you are, but the good news is that it is never too late or too hard to achieve when you have support from expert mortgage brokers.”

Mr Symond continued: “We realise how difficult a deposit can be to come up with, which is why we welcome the introduction of the scheme by the federal government. 

“We fully support any initiative that helps more Australians secure their future, given 20 per cent of loans derived through an Aussie broker are for first home buyers.

“Australians naturally want to progress towards their home ownership goals, and with the current low rates, strong auction clearance rates and the federal government deposit scheme, 2020 is providing great new opportunities for first home buyers,” he said.

Mr Symond has joined other lenders in urging brokers and borrowers to act quickly if they are interested in securing one of the 10,000 spots available in the scheme.

“Given the strong demand shown from borrowers already, we expect the next round of positions to fill up fast,” Mr Symond said.

[Related: Non-majors begin offering FHLDS loans]