Girl power! Single, female FHBs on the rise

There’s an interesting property market trend underway… Let’s all welcome the single, female first home buyer!

Statistics show Gen Y females are the fastest growing group of mortgagors, taking out almost one-quarter of mortgages in Australia in 2015. In fact, almost twice as many single women are buying homes as single men!

Why are women going it alone?
There has been a significant shift in the lender market – 30 years ago single women often suffered discrimination when applying for home loans. Fast forward to 2017 and itis financial merit, not gender, that underpins qualification for a home loan.

In the same period, there has also been sizeable growth in participation rates of women in the workforce1. However it seems that social change has been a key driver for young women to seek their own financial independence – many no longer see a need to wait for the right guy to come along!

Women now think about property as part of their life plan. In a recent survey2 87%of 18-34-year-old women listed owning a home and paying it off as a lifetime goal(compared to 79% of men).

The survey also revealed Gen Y women can be more financially literate thanGen Y men showing:

• 81% of females understand variable interest rates (60% for males)

• 49% rank home ownership over having children (14%) and getting married (5%)

• 73% list paying off their home loan sooner as the most important factor when taking out a loan

What do you need to know?
Regardless of gender, there are important points to consider when buying property on a single income. FIRST, on your list should be talking to us – your finance specialist.

The initial challenge is determining how you will save the deposit and manage repayments on your single income – there is still an average pay gap of 16%between women and men in equivalent full-time roles!

If possible, aim to save at least 20% deposit to avoid lender’s mortgage insurance(LMI) plus extra for stamp duty, legal fees, moving costs etc.

Other important considerations:

• Do you know your credit score? Either get a copy of your credit report ORwe can get it for you.

• Know your borrowing capacity BEFORE you commence. Maybe a smaller, cheaper property is a viable way to start?

• Check your eligibility for a first home owner grant (FHOG) in your state.

• The ‘bank of Mum and Dad’ is another growing trend! If family members are in a position to help we can assist you to explore options such as a family guarantee or gifted deposit.

• We can arrange pre-approval of your loan. This assists you to act quickly AND sticks to your budget.

• Perhaps consider becoming a ‘rentvestor’? Rental income on an investment property may help pay down your loan while you rent where you want to live or live at home and save.

• We can explore loan features suitable for your individual circumstances as a single buyer and your long-term financial goals.

• What about pooling your resources?Individual applicants have been slowly shrinking since 2012 as young buyers team up with siblings, parents or friends to get into the market.

• Don’t forget income protection insurance – so VERY important when buying on a single income. Don’t leave your financial future to chance!

First home buyers are VERY much in the news – there is growing pressure for our governments to do more to help them into a property. Measures to abolish stamp duty and increase FHOGs are already underway in some states.

As your finance specialist it is our job to keep up to date with the latest financial market changes so give us a call TODAY!

Comments are closed.

Contact Us


Australian Office
Level 29, 221 St Georges Tce
Perth WA 6000
Phone: (61) 8 9214 3894
Fax: (61) 8 9480 3705

Singapore Office
8 Temasek Boulevard Penthouse Level,
Suntec Tower Three,
Singapore 038988
Phone: (65) 6829 2266
Fax: (65) 68292121