Average home loan rises fast for new starters

The average size of a home loan to a first home buyer increased by $11,400 over the three months to February 2009. Loans to first home buyers had increased by $18,100 over the three months to November 2008.

Over two years the average home loan for a first-home buyer average loan size increased by $52,000 to $280,600 in the two years to February 2009. In February first home buyers accounted for 26.9 per cent of all new home loans up from from 17.3 per cent in February 2008.

One reason for the rise is the federal government's First Home Owner's Boost scheme – which provides up to $21,000 for new homes and $14,000 for established homes. This scheme is progressively phased out, and will cut out altogether after the end of this year.

Source: The Australian