Helia’s latest pulse survey has found that as more prospective home buyers struggle to buy, there is a perceptible shift to more first-time buyers considering a purchase that may not be their ideal property or exploring alternative pathways to home ownershop. According to the survey, saving for a deposit remains a major challenge, with 90% of prospective first home buyers confirming it is increasingly difficult to save for a deposit amid rising living costs.
Home buyers are using Lenders Mortgage Insurance (LMI) and other alternative strategies to help them get onto the property ladder, according to Helia.
Helia Chief Executive Officer, Pauline Blight-Johnston said: “Over 90% of first home buyers reported that saving for a deposit is feeling increasingly out of reach.”
As first-time buyers navigate the current economic climate, the survey found that when purchasing their property, 41% of home buyers had opted for a home loan with a fixed rate period, with the remainder on variable rate loans.
Although many fixed-rate borrowers have been insulated from recent interest rate increases, 53% will have their fixed rate period expire in the next 12 months, with 27% expiring in less than 6 months, and 26% within 6 to 12 months.
For people surveyed with fixed-rate home loans expiring in the next 12 months, 64% said they are likely to refinance.View Original Article