Despite record lack of affordability, first home buyers are gradually returning to the mortgage market. Mortgage providers have launched a range of products in order to target them better. Still, catering to first home buyers remains a difficult but important task.

Scope

This report analyses data to understand first home buyers in the context of the mortgage market in Australia. This report analyses products already in the market for first home buyers in Australia, as well as discussing new products. The report concludes with forecasts of first home buyer lending commitments to 2011.

Highlights

In terms of value, lending commitments to first home buyers of owner-occupied housing have increased from AUD$17.1 billion in 2003 to AUD$29.2 billion in 2006. This corresponds to a compounded annual growth rate (CAGR) of 19.6%. One of the main target segments for shared equity mortgages are first home buyers struggling with lack of affordability, as monthly mortgage repayments will be lower than if borrowing for a property with a small deposit. It is Datamonitor's opinion that supply side solutions are likely to be most important in improving housing affordability, given that the current tight housing supply translates higher demand into higher prices.

Reasons to Purchase

Detailed analysis on lending commitments in Australia. Detailed analysis of mortgages available to first home buyers including products that are to be launched in 2007. Provides forecasts of first home buyer lending commitments for Australia up to 2011.