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First home buyers paying about $669,000 on average for a home and taking on a $556,000 mortgage



By Greg Ninness

There was a jump in the number of first home buyers getting into a home of their own last month, according to the latest Reserve Bank figures.

These show mortgages were approved for 2558 first home buyers in May, up from 1883 in April (+36%).

That was not unusual because housing market activity usually increases in May compared to April. However the number of first home buyers taking out a mortgage in May this year was up 23% compared to May last year, but still down by 20% compared to the boom year of 2021.

The decision by the Reserve Bank to slightly ease loan-to-valuation ratio (LVR) restrictions on new mortgage lending form the 1st of this month may have helped to push up loan approvals for first home buyers as some of them had their finance approved with less than a 20% deposit ahead of settling the sale this month.

However, the effect of the new LVR limits was probably only small, with 781 loans approved to first home buyers with less than a 20% deposit in May. That's up 43% compared to April, while approvals to first home buyers with at least a 20% deposit were up 33% compared to April.

It may be another few months before the full effect of the changed LVR limits becomes apparent.

While there was an increase in the number of mortgages being taken out by first home buyers last month there was very little movement in either the average price they were paying for their homes or the average size of their mortgages. estimates the average price paid by first home buyers last month was $669,000, down slightly from $672,000 in April, while their average mortgage size was $556,000, barely changed from $557,000 in April.

Over the 12 months to May the estimated average price paid by first home buyers has declined by about $48,000, while average loan amount has declined by about $40,000.

This story was originally published on and has been republished here with permission.