NAB’s residential property survey found borrowing capacity tops the list of what Aussies find most important when purchasing a home.

More than eight in 10 (82%) of the respondents said borrowing power was the biggest factor, up from 74% a year ago.

Keep in mind this was before the RBA started increasing the cash rate - now sitting at 2.60%. 

The survey was conducted with 350 real estate agents, property developers, asset managers, and owners/investors across the country.

The age-old expression ‘location, location, location’ continued to hold true with 60% highlighting local amenities, shopping, and restaurants as a key factor to consider when shopping for a new home. 

NAB Executive Home Ownership Andy Kerr said the property market is starting to see a shift as more Aussies become cautious on what they can afford.

“A trend we are seeing emerge from the pandemic is more Aussies considering apartments over houses for the first time since the survey began, driven by return to office working and caution on borrowing amounts,” Mr Kerr said.

“Affordability and rising interest rates are absolutely part of the equation for home buyers.

“Location is still one of the most critical buying factors and flexible working is here to stay, so where Aussies buy continues to be important.”

Michelle May, Principal of Michelle May Buyers Agents, echoed a similar sentiment saying buyer priorities and budgets are undergoing a massive change.

“Thanks to the series of rate rises, hand in hand with stricter approval processes, buyers are having to re-evaluate their strategy completely,” Ms May said.

“High expectations on wish lists for homes are being brought down as buyers agents help buyers gain perspective with homes they would otherwise overlook.

“The silver lining is that these purchases are ideally more financially manageable and ultimately more compatible with buyer needs.”

Advertisement

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by OleksandrPidvalnyi via Pixabay



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy