The latest figures from the ABS show that first home buyers made up 28% of the value of new mortgages the highest percentage on record.
Loans to first home buyers on average increased by $50,000 roughly double the increase in the size of new loans to established homeowners.
Although the government has hyped the success of the increased FHBG in bolstering the housing market and helping Australia avoid recession there is concern that first home buyers are signing up for loans that they will struggle to repay when interest rates rise as they surely will.
Tags: Add new tag, fhbg, property market, real estate market
I totally agree with your opinion.
With approximately 30,000 FHOG applicants in the market and inflated property prices due to their demand..things will look quite grime once this increased payment scheme has run its course..Many applicants are just scrapping in on servicing at today’s rates..what will happen when rates eventually move back up..Signs are there with the CBA recently announcing it has increased its variable rates by 0.10%…
Worrying times ahead I feel.