Record levels of first home buyers taking out low deposit loans

Across the country first home buyers have taken advantage of lower mortgage rates and below-peak property prices, maintaining a record share of market activity in the final months of this year, Cotality data shows.

The share of purchases going to first-home buyers in this year is near record levels, Kelvin Davidson, Cotality chief property economist says.

He sums it up as being, if not a record, close to it and a sustained peak through last year and this year.

First-home buyers are able to access low-deposit lending through the banks. About 12-13% of lending to owner-occupiers was done at loan-to-value ratios of more than 80%, well below the 20% limit.