THE average loan size for first-home buyers has risen by $52,000 – or 23 per cent – in the past two years, raising fears that government incentives for young buyers are artificially inflating the market.
A report commissioned by Brandmanagement, a market research firm specialising in the finance sector, says the average size of loans being taken up by young home buyers is jumping by an “unsustainable” amount.
Drawing on Australian Bureau of Statistics figures, the report has found the average size of the loans rose by $11,400 in the three months to February, after rising by $18,100 in the three months to November.
» First-home buyers borrow big – The Australian, 25th May 2009.
» Size of first-home buyers’ loans inflating – News Limited, 25th May 2009.