By Brad Makivoy | July 10, 2017
If you’re a first home buyer looking to break into the market, things have been tough the last few years. Fortunately, there’s some good news at last!
In order to help more people get into their first home, many banks have been coming up with more and more clever ways to encourage first home buyers into the market.
Take the example of one the big 4 banks.
They’ve just announced a very generous cash back offer for first home buyers as a reimbursement to cover conveyancing costs (the legalities when buying or selling, typically done by a settlement agent). The deal is beginning as a pilot program in one state before potentially rolling out nationwide.
This isn’t the first or only case, other lenders have also recently announced similar incentives including special introductory interest rate deals at below the market rate.
With rising house prices a growing issue for those struggling to get into the property market, the banks are hoping that generous financial incentives will be motivation for many to pull the trigger.
Why are the banks being so generous?
Well, keep in mind that the housing affordability issue has had a negative impact on banks just as much as buyers.
Fewer people entering the market means fewer people to sell loans to and less profit for the banks.
Believe it not, but for the banks, right now is about as bad as it gets. Business Insider Australia has reported that lending to first home buyers has plummeted to its lowest point since 2004.
Rolling out financial incentives is an easy way for the banks to stimulate the market and encourage more borrowers.
If you’re looking to break into the property market, now is a great time to take advantage. Fortunately, at Savings Hacker, you can get started right now.
Check if you’re eligible for the best first home buyer deals on the market. Get your free market comparison completed by a mortgage professional here.