First-time home buyers struggling with mortgages: report

However, almost two-thirds of the respondents had to pay off other debts before they could afford to purchase their first property, with NSW residents being the most likely to repay their debts first at 43 per cent, and Western Australia and Victoria residents being the least likely at around one-third.

The Homebuyer Barometer also shows that Millennials had the biggest debt to repay at more than $10,000, while respondents aged from 45 to 64 had the smallest debts, with 90 per cent of those within this range having debts amounting to less than $5,000.

More than half of the survey’s respondents needed one to five years before they were able to save a deposit. WA residents were the most prudent savers with a third of them needed less than a year to save for a deposit. NSW residents meanwhile had the hardest time saving up, wherein almost one-fourth of the respondents needed at least five years to complete their deposits.

Although the majority of the survey respondents used their own savings to pay up, 12 per cent of the respondents relied on their parents’ money for completing their deposits.

WA residents again proved to be the better savers, with 79 per cent of them using their own money to save their deposits. Meanwhile, Queensland and NSW residents relied more on their parents to save up for a home deposit at 16 per cent and 15 per cent, respectively.

High property prices in Australia has also compelled several people to jointly purchase properties with another person, with 61 per cent of the survey respondents entering the property market with their partners.

However, a lot of people still opted to go solo, with one-third of the respondents purchasing their first properties by themselves. Almost half of South Australian respondents went solo, while Queensland had the least number of solo buyers at 22 per cent.

According to Homeloans spokesperson Will Keall, “Navigating the maze of mortgages is obviously overwhelming for many first home buyers, with more than one in five Homebuyer Barometer respondents across the country citing that as the greatest stress in buying a home.”

Mr Keall also added that for Queensland respondents, finding and choosing the right mortgage is almost as difficult as looking for the right property. 28 per cent of the state’s respondents found it hard to look for the right property, while 25 per cent found it difficult to find the right mortgage.

“It really shows how important it is to do your research and have an understanding of the nuts and bolts of a loan – not just the interest rate on offer. If you’re considering a particular home loan, ask for a key facts sheet, which will enable you to compare and select the best loan for you,” he said.

[Clients for life: first home buyers]