More singles, especially women, are being squeezed out from home ownership, an analysis by super fund-owned ME Bank has revealed.
The number of individual home loan applicants put forth with the bank had fallen by 9 points to 35 percent out of all loans over the past two years with home loan applications produced by women falling by 14 points in comparison to 5 points among single men.
The figures are based on the bank’s customer data of 40,000 home loan applications the bank had received in the last two years.
But it’s not all doom and gloom as New South Wales-based singles have been experiencing the greatest jump in an average loan amount, rising by 16 percent to $422,000, followed by Victorian singles by 11 percent to $348,000.
There is also more good news as the average loan size for single-mortgage applications had grown by 9 percent to $355,000 in the last two years.
“Even as part of a couple, east coast property prices are out of reach for many Australians,” said ME head of home loans, Patrick Nolan.
“But being single is not a reason to delay or forgo home ownership. Buying your own home is one of the smartest decisions you can make,” he said.
“There are a number of strategies you can deploy such as investing or tapping into the bank of mum and dad.
“Alternatively, join joining forces with someone who isn’t your romantic partner such a friend or family member.”
“It’s also important to arrange pre-approval for a home loan in advance to give you a good idea of what you can afford and not waste time looking at homes that are beyond your budget.”