New data from the bank shows the benefit for first-home buyers if they take advantage of government programs
First-home buyers are shaving nearly five years off the time needed to save for a mortgage by taking advantage of deposit schemes offered by the government, according to new data from Commonwealth Bank.
CBA found that customers nationally have been able to buy a home an average of 4.78 years faster if they took advantage of either the First Home Loan Deposit Scheme (FHLDS) or New Home Guarantee (NHG).
New South Wales and Victoria, two of Australia’s more expensive housing markets, saw the biggest benefit, according to a report by The Australian.
First-home buyers in NSW saved an average of 5.05 years by accessing either the FHLDS or NHG, and Victorians were able to save 4.99 years.
Buyers in Queensland saved 4.2 years of savings time, while West Australians saved 4.5 years, The Australian reported.
Programs like the FHLDS have been implemented by both state and federal governments to help first-home buyers gain a foothold in the property market. The FHLDS allows first-home buyers to acquire a mortgage with only a 5% deposit instead of the traditional 20%.
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CBA’s findings come as banks are beginning to open up new application slots for the schemes, The Australian reported. Michael Baumann, CBA’s home buying executive, told the publication that saving for a deposit is the biggest challenge for people trying to enter the property market. He also said the programs were boosting the uptake of property across the country, not simply supporting new housing developments.
“Speaking to our lenders and brokers, we know the schemes have been a great success for a wide range of different customers – both singles and couples – looking to realise their homeownership goals across the country,” Baumann said. “We’ve helped customers buy everything from a duplex in Padstow to a townhouse in Umina Beach, an apartment on Coogee and a newly build home in Box Hill.”