The average home loan size remains stable, in spite of lingering economic uncertainty, according to a JP Morgan economist.
Speaking to the AAP, Ben Jarman commented that steady home loan sizes are indicative of a healthy market.
The first-time buyer category is particularly stable, he explained, adding that this is normally the first market to show any signs of financial stress.
He added that figures showing a reduced demand for home loans in the past couple of months should not “ring alarm bells”, particularly given the property market’s strong performance in recent years.
First-time buyers will need to take a number of factors into account before they apply for their new home loan.
They may wish to check to see if they qualify for financial assistance – government grants of $7,000 are available for those purchasing their first home, while other funding is available in the state of Victoria for those who are buying or building a new property.
The Real Estate Institute of Victoria recommends that first-time buyers contact their State Revenue Office for more information about financial assistance requirements.
New home buyers will also need to take into account borrowing costs, including mortgage insurance, their loan establishment fee and stamp duty, before they apply for a home loan.
Other factors that could affect buyer costs include legal assistance, building reports or valuation reports, as well as pest inspections.