Research

First home buyer insights – collaboration with CBA

The National Housing Finance and Investment Corporation (NHFIC) today released its second data collaboration with the Commonwealth Bank (CBA) looking at trends and insights across the CBA first home buyer market.

Some of the key insights include:

  • The HGS continues to support people on modest incomes with the average annual household income of HGS participants being $108,000 compared with $117,000 for the broader first home buyer market.
  • Average deposit amounts paid by first home buyers in the HGS has increased marginally from $35,200 to $36,400 since 2020 compared with the broader first home buyer market where average deposits rose by almost 50% from $108,400 to $159,000. This may indicate that first home buyer savings are being supplemented by other sources.
  • HGS participants tended to take out a smaller loan relative to income compared with the broader first home buyer market. The average loan amount under HGS has increased 4.7% since 2020 while the average loan for the broader first home buyer market increased by 13.4%.
  • The HGS continues to support more women as a proportion of single borrowers relative to the broader first home buyer market (54% under HGS compared with 47% broader first home buyer market), particularly those that are single with dependents under the Family Home Guarantee (80%).
  • Analysis suggests that on average, HGS participants continue to see the equity in their home grow broadly in line with long run price increases, despite the broader market declines last year. The average equity gain per HGS guarantee is estimated to be around $82,000.
  • Additional NHFIC analysis suggests that price falls in the HGS segment at the lower end of the market (between 20th and 30th percentiles) were modest at 1-2% compared with 5-8% falls for the broader housing market.