Shock figure for first-home buyers
Aspiring homeowners now need a whopping six-figure deposit to purchase a property, according to a new study.
Finder's First Home Buyers Report 2021 - which surveyed 1028 first-home buyers - found 11 per cent required more than a decade to scrape a deposit together.
The staggering results followed new Australian Bureau of Statistics data that showed the average deposit needed to secure a mortgage was $106,743 - an increase of 16 per cent since January 2019.
The ACT had the largest home deposit increase since 2019, with the upfront amount required swelling by 24 per cent to $117,790, followed by NSW - up by 23 per cent to $128,469.
The report also found the average first-home buyer put down 20 per cent of the purchase price as a deposit.
Finder home loans expert Sarah Megginson said saving for a house deposit was "a big financial hurdle" for first-home buyers.
"Prospective buyers are being stumped by a supercharged property market, which isn't showing any signs of slowing down just yet," she said.
"Low interest rates have made it cheaper to pay down a mortgage, but this has pushed up property prices, making it even harder to save for a deposit."
Finder's research also revealed more than a third of respondents - 38 per cent - took between two and five years to save for their deposit, while 25 per cent said it took them between five and 10 years.
Ms Megginson said government grants could help eligible buyers fast-track their dream of homeownership.
"As part of the First Home Loan Deposit Scheme, eligible buyers can seek out a mortgage with a five per cent deposit," she said.
"This means that for a property worth $600,000, you'd only need to save $30,000 which is far more achievable than a six-figure sum, and can help younger buyers get into the market early.
"While this does increase the cost of the mortgage over its lifetime through interest, the gains you stand to make as the property increases in value over time could potentially outweigh the extra interest costs.
"It's important first-home buyers weigh up all of these pros and cons when considering a real estate purchase," Ms Megginson said.
Originally published as Shock figure for first-home buyers