More first-home buyers bite the bullet as market confidence swells

More first-time buyers are taking the plunge on home ownership with loan applications surging 16 per cent at one of Australia’s big four banks.

Victoria is leading the way in first-home owner activity, recording a 28 per cent jump in lending since February, new NAB data shows.

It’s followed closely by Western Australia, up 22 per cent, and Queensland, up 21 per cent.

Overall, lending to all owner occupiers increased by almost a third nationwide since the Reserve Bank delivered its first rate earlier this year.

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Librarian Charlotte Dru Ziegeler has just bought her first home in St Leonards on the Bellarine Peninsula after a short search.

Geelong children’s librarian Charlotte Dru Ziegeler is one of a growing number of first-home buyers re-entering the market as conditions improve.

The 33-year-old recently purchased a house in the seaside Bellarine Peninsula town of St Leonards, near where she grew up.

She said had been watching the market and wasn’t sure if her deposit would be enough to purchase a home but was encouraged as variable home loan rates started to fall.

“I spoke to a banker, got pre-approved in less than an hour and then, not long after, the right house came up,” Ms Dru Ziegeler said.

“It all happened so fast, it was really exciting, and a huge ‘pinch me’ moment.”

She moved in just six weeks after kickstarting the process, becoming the first of her siblings to buy a house.

NAB home lending executive Denton Pugh doesn’t expect the momentum to cool over winter. Picture: Supplied.

NAB home lending executive Denton Pugh said cuts to both fixed and variable home loan rates were enticing more first-home and other buyers to re-enter the market.

“We’re seeing momentum return, especially with people like Charlotte who’ve been saving or waiting for the right time to take heat jump into home ownership,” Mr Pugh said.

“And that momentum could carry through winter, which is usually a quieter time with less sellers listing over the cooler months.”

He said despite the rate cuts, borrowing costs remained high but this worked in favour of first-home buyers by keeping a lid on property price rises.

Buyers’ advocate Cate Bakos said first-home buyers were sensing that now might be their chance to get a foot in the door.

Buyers’ advocate Cate Bakos has seen an uptick in confidence at the coalface.

“I think it’s driven by a few factors. There’s a bit of FOMO, sure, but more than that, it’s optimism,” Ms Bakos said.

“The federal election is out of the way, interest rates look to be on a downward path, and that’s creating a window of confidence.”

She said the expansion of the First Home Guarantee scheme had been a game changer for some of her clients, while other were co-buying with their parents or siblings.

“Victoria, in particular, has been a more accessible market for first-home buyers lately,” she said.

“Investor demand here has been softer compared to other states, which has opened up more opportunity.”

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