First home buyers are on the move, according to IMB Building Society.
The building society has announced a 300 per cent year-on-year spike in First Home Saver account applications.
IMB CEO Robert Ryan said the account is designed to help first home buyers enter the property market. “Getting a foot in the door of home ownership is increasingly difficult for young people, but the First Home Saver Account is a great way to boost your savings,” he said.
The government pays an annual contribution of 17 per cent on the deposits up to $6,000 that an account holder makes each financial year.
The current low interest rate environment has increased loan affordability for many young Australians.
Leading Victorian broker Melissa Gielnik from Smart Lending said she expects first home buyers to come back to the market in the next 12 to 24 months.
“At the moment, around 15 per cent of our business is first home buyers but that was previously up around 50 per cent. We are expecting them to come back to around 25 per cent of our business,” she said.