Buyers borrowing record amount to secure properties
First-time home buyers in Australia are borrowing more money than ever before in order to join the increasingly expensive property market. The average amount borrowed by buyers is increasing every month and is around $100,000 more than five years previously due to property prices in cities such as Sydney remaining high. However, in other regions such as New South Wales and Victoria, interest rates are relatively low and there remains a large demand for investors.
First home buyers are keeping their hope of home ownership alive by taking out record breaking loans.

New home loan data from the Australian Bureau of Statistics has revealed that rising property prices across Australia forced buyers to take out an average loan of $340,200 to secure a house in June.

'As prices move up, people have to borrow more to buy their first home,' AMP chief economist Shane Oliver told Domain.

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First home buyers are keeping their hope of home ownership alive by taking out record breaking loans

New home loan data has revealed that property prices forced buyers to take out an average loan of $340,200

This was an extra $31,600 on top of last years, making it the highest average loan amount on record.

The amount is also growing by the month, with the figure rising $7000 between May and June of this year.

The current average loan amount is also nearly $100,000 extra that at the same time five years ago.

This property at 40 Bay St in Brighton in Melbourne hit the market this week, boasting five bedrooms

The homestead sits on 1960m2 and original period detail has been respectfully restored

First home buyers are taking out average loans for Melbourne properties at $60,000 more than in Sydney

While the 6.8 per cent quarterly leap in first home buyer commitments has been dubbed a 'sign of improvement,' the growth in investor numbers means breaking the market remains tough.

The rising property prices across Sydney has seen first home buyers taking out an average loan of a whopping $398,600.

'It's going to be a much longer journey for first-home buyers, especially to get into that Sydney market.' senior economist Andrew Wilson told Domain.

The rising property prices across Sydney has seen first home buyers taking out an average loan of a whopping $398,600

This property, at 22 Olola Avenue Vaucluse NSW, boasts six huge bedrooms and four pristine bathrooms

The home has vast roof top entertainers terrace with a pool and harbour and district views

This figure is $60,000 more than Melbourne, which sees buyers borrowing a record average of $338,000.

'What makes it harder is, in the olden days when we paid less for homes and interest rates were higher, we also had high inflation and wages were going up faster,' AMP chief economist Shane Oliver said.

It is expected that the high demand for investors across New South Wales and Victoria will remain as long as interest rates stay low.

'It's going to be a much longer journey for first-home buyers, especially to get into that Sydney market.' senior economist Andrew Wilson said