The specialist property lawyers encourage first home buyers to get expert advice to make their purchases easier.
With the demand for homes constantly growing and the supply shrinking, it is getting difficult for first home buyers to find a suitable home they can afford. With the constant struggles of affording a deposit and lending restrictions increasing, many find themselves in a rental for several years.
The Reserve Bank has tightened loan-to-value ratio restrictions by halving the amount that can be lent to borrowers with a deposit smaller than 20 per cent. With the increased house prices, this also means that many have to wait longer until they have saved up enough for a deposit. They are also looking to introduce a debt-to-income limit, restricting loans to households with an income above a set amount. By this, the bank is trying to reduce the risk of loans not being paid back.
The competition between investors and first home buyers is likely to increase as well with growing demand, making it extremely challenging for people to get into their dream property.
If you are thinking of purchasing a home, get in touch with HomeLegal. Our legal experts can support you throughout your property buying journey!