The debt burden of first home buyers is getting bigger. Trends in the first home buyer (FHB) market create further reasons for caution, as the proportion of FHB loans reaches its highest level since ABS records began tracking the market in 1991.
Debt burdens have risen substantially in this segment, with the average loan size increasing by 6.4, compared with an increase for non-first home buyers of 2.8. The report findings suggest some FHBs may be poorly prepared for what will probably be their biggest investment decision, with 24% of recent FHBs bringing forward their purchase to take advantage of government stimulus efforts.
Expectations of mortgage stress are also higher for this segment with 19% of FHBs anticipating difficulty with repayments in the future.
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