First home buyers’ mortgage market share hits a record

This is the highest share on record. In June last year the share of new commitments to first home buyers was 18.3%.

LVR restrictions were eased at the beginning of last month and anecdotal evidence from real estate agencies is that first home buyers are back in force. A number say first home buyers are wanting to purchase before the election as they believe if the Government changes house prices will start rising the next day.

First home buyers took out mortgages to a total value of $1,385 billion last month, down from $1,422 billion (2.6%) the month before, but up from $1,109 in June last year. During June 2021’s market peak, first home buyers borrowed $1,649 billion.

On the other hand, owner-occupier movers’ and investors’ market share has slumped. Their mortgage lending dropped by 14% and 10.9% respectively compared to June last year.