16th January 2017
More singles are being squeezed out of buying a home according to an analysis by industry super fund-owned bank ME.
The number of single home loan applications with the home loan lender fell by 9 points to 35% of all loans over the past two years.
Meanwhile, the average loan size for single-mortgage applications increased by 9% to $355,000.
Single females were significantly worse off than men. The number of single female loan applications fell by 14 points compared to only 5 points among single men.
Not surprisingly, New South Wales-based singles experienced the greatest jump in the average loan amount, rising by 16% to $422,000, followed by Victorian singles by 11% to $348,000.
“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 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.”
Note to editors: Numbers are based on ME customer data of around 40,000 loans over 2 years.