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The number of first home buyers who experience mortgage stress has climbed drastically over the last six months.
First home buyer confidence fell from 102.1 in March to 98.4 in September, according to the 11th edition of the Genworth Homebuyer Confidence Index.
The share of first home buyers who were experiencing mortgage stress jumped from nine per cent to 21 per cent, while the share of those who expect mortgage stress rose from eight per cent to 14 per cent.
Rising cost of living was the most common reason given by those experiencing or expecting mortgage stress.
The share of first home buyers who felt it was a bad time to buy a home increased from six per cent to nine per cent, while those who thought it was a good time increased from 66 per cent to 67 per cent.
The report said the key challenge faced by aspiring buyers was the ability to enter the property market rather than the ability to meet mortgage repayments.
According to the report, 51 per cent of first home buyers sourced their mortgage deposit from their savings, compared to 72 per cent two years earlier.
Between 2013 and 2015, the share of first home buyers using credit cards to fund their deposit rose from three per cent to 19 per cent, while the use of personal loans rose from eight per cent to 18 per cent.
[LinkedIn: What can be done to help first home buyers?]
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