First-Time Home Buyers Are Getting Older

The average generation of first-time home buyers has moved on a decade. No longer are people buying their first property in their early 20’s, they are now waiting until they reach their early to mid-thirties before taking on their first mortgage.
Home Loans in Rockingham

There are several reasons for this dramatic change in outlook. First, the recession has bitten relatively deep for a lot of people which has meant that banks have become tighter and more careful in their lending. Someone with a minor blip in their financial management could still have received a mortgage and therefore, purchased a new property a few years ago. Today, that one credit card accident could prevent you from gaining a mortgage from the majority of banks.

Your Mortgage Broker Is Your New Best Friend

If you need a home loan in Rockingham, and you’ve seen a minor problem in your financial records, a local mortgage broker will know which banks will look more kindly on your application.

The second side of the dilemma is the amount of deposit the banks are requiring, which has become noticeably higher. Banks prefer first-time buyers to place a bigger savings deposit and obtain a smaller mortgage. While this is obviously beneficial to both the bank’s security and the new mortgagee’s monthly payments, it does make it more difficult for first-time buyers to raise the size of deposit required.

Thirdly, people are marrying at a much later age. People used to marry in their late teens or early 20’s. Many couples are now waiting until their early 30’s before they propose and taking on new financial responsibilities at that time.

Changing Lifestyles

The modern person in their 20’s has a different lifestyle to that of a decade ago. Many more young people are continuing to live at home with the all the amenities and facilities that includes, because their parents have gradually built up to a sizeable property over the years. Less people are prepared to buy the very smallest of houses just to get themselves on the property ladder. They prefer to wait until they can purchase the property of their dreams, which may mean that they move less often in the future, with all the associated cost savings, but a bigger outlay now.

People are being more demanding in their choice of location and neighbourhood as they discuss terms for home loans in their desired neighbourhood, such as Rockingham or Kwinana. Many would prefer to wait until they can afford to live in an area they find perfectly acceptable, rather than live for a few years in a rundown area were properties are obviously cheaper to purchase.

The recession did slow down the buying and selling property market, but the rental market has been extremely active. This has caused rents to increase in some areas, which means fewer saving where people are trying to set aside a deposit before meeting with a mortgage broker in areas such as Cockburn, Rockingham, Kwinana, and other nearby areas.

Many people are listening to their parent’s advice and not purchasing a property until they can afford not only the purchase, but also the annual expenses and taxes. Regardless of your age, contacting a mortgage broker to shop rates for you could make a big difference in how much you have to spend to get into the homeowners’ market.