Why buying a first home is becoming more difficult – Collins & May Law

Wednesday 6 October 2021, 2:08PM
By Media Giant

With homes becoming more expensive, interest rates increasing, and loan to value ratios becoming stricter, many potential first-home buyers are struggling to find a property they can afford.

The Reserve Bank has talked about introducing a tighter loan to value ratio, planning to lend less amount to borrowers with a deposit below 20%. First-home buyers will need to save up more to meet the 20% deposit range and gain the benefits this offers. However, with over a 30% surge in house prices over the past year, this is becoming more and more difficult.

On the other hand, the rules for investors aren’t becoming tighter, which means that with the low supply and great demand, first-home buyers are facing even more competition.

Collins & May Law supports first-home buyers in their property journey. We work closely together with our clients to find the best financing solution for their needs and ensure they secure their dream home. Our team of lawyers are specialised in conveyancing and help first-home buyers understand the difficult legal jargon that comes with loans and deposits. Contact us if you require a trusted lawyer to support you in your property journey.

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